The pound is in for another stormy few days early this week, after it dropped around a percentage point against the euro last week and 2% against the US dollar.
On Tuesday we will see those losses either recovered or reinforced and deepened, when the GDP results for the last quarter of 2019 are announced. It could go either way.
Also of interest this week will be the first major Cabinet reshuffle of Boris Johnson’s premiership on Thursday. The word from inside government is of the clash between chief Special Advisor Dominic Cummings and the Chancellor Sajid Javid, with Cummings wanting to spend more money and the Chancellor trying to keep a lid on finances (as is their wont).
Linked to that will be the decision on the HS2 railway line – whether to spend up to £106bn on it or not – although on this one the chancellor seems to want to spend the money and the special advisor doesn’t. Confusing isn’t it?
Again, the effect on the pound of different announcements and the messages they send, is entirely unknown but could easily move the market.
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