The pound is slightly weaker this morning against both the euro and the dollar. The UK and EU have agreed to intensify their negotiations, but sticking points, such as issues surrounding fishing rights, still remain. The EU’s Chief Negotiator, Michel Barnier, arrived in London yesterday for continued talks and warned that time is running out. Downing Street has said that “significant gaps” remain in negotiations.
Yesterday, the Bank of England’s Chief Economist, Anthony Haldane, said that the Bank is not poised to cut interest rates below zero. This comes after much speculation that the BoE could be considering negative interest rates. Despite this, he added, “We are doing work to ensure that that tool is in the toolbox.”
Consumer confidence figures came in yesterday, which declined to -31 in October from -25 in the previous month and compared to expectations of -28, as further lockdowns across the UK weighed heavily.
Retail sales increased 1.5% month-on-month in September, beating forecasts of a 0.4% rise. Year-on-year they also increased by 4.7%. Later today, PMI figures will be released for the UK.
