After reaching a three and a half year high against the euro last week, the pound weakened slightly on Friday afternoon. It was originally boosted by the prospect of increased government spending as a result of Rishi Sunak becoming Chancellor. However, it is still above significant levels this morning against both the euro and the dollar.
In his resignation letter, Sajid Javid said: “I believe it is important as leaders to have trusted teams that reflect the character and integrity that you would wish to be associated with.” This came after reports that he refused demands from the Prime Minister to sack his team of advisors.
This week, we’ll see a series of important data releases for the UK, including inflation rate data, retail sales and a series of PMI figures to finish the week. Manufacturing is expected to drop slightly into contraction territory.
Trade negotiation headlines may take the spotlight this week, with Chief Brexit negotiator, David Frost, expected to say in a lecture in Brussels this evening that the EU’s push to make the UK stick to its rules will reduce the chances of a deal.
