The pound is stronger against the dollar and euro this morning on renewed optimism for a Brexit deal. Michael Gove said this week that his expectations of a deal are now around 66%, an improvement to the 33% held by the government in early September.
There is also still optimism that the issue of state aid can be resolved soon. Fisheries, however, are still a sticking point and an essential component of the deal. October 15th is a key date which the markets are focusing on, as the Prime Minister said he would walk away from negotiations at this point if a deal isn’t made. However, some expect negotiations to run beyond this point regardless.
Data released this morning shows that Britain’s gross domestic product grew by 8% in the three months to August, recovering from five consecutive periods of contraction but slightly missing market expectations. However, it only grew 2.1% month-on-month, showing that economic recovery has slowed. Industrial production also increased month-on-month in August, by 0.3%.
