Concerns about the economy are making households more and more cautious, according to the latest IHS Markit figures, showing a three-month low in household confidence.
The pound is choppy against the euro this morning, as Brexit uncertainty continues. Boris Johnson has written to European leaders, asking for a replacement of the Irish backstop with alternative arrangements. It seems doubtful so far that this will lead to any change in position, but the markets will be carefully watching for any hints from Wednesday and Thursday’s meetings between the UK PM and Angela Merkel and Emmanuel Macron.
The Bundesbank has released a relatively gloomy prognosis for Germany’s economy, saying further contraction is expected from now on. Meanwhile, in the US, the dollar is still strong, and Donald Trump has called for further rate cuts from the Federal Reserve.
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