Despite positive data releases yesterday, the pound is weak this morning. Britain’s labour market showed unexpected strength, with total earnings growth rising by 3.9% per year between April and June, the highest rate since 2008. This figure suggests that Brexit uncertainty isn’t affecting pay. Employment also reached a record high of 32.81 million. However, it was reported that unemployment grew to 3.9%, from 3.8% a month ago.
In the latest Brexit news, the Prime Minister has been accused of trying to ‘wreck’ any possible deal with the EU. Former Chancellor Philip Hammond said that Johnson is making demands that the EU could never accept, and that a no-deal scenario would be a “betrayal” of the 2016 referendum result.
Speaker John Bercow has also spoken out against a no-deal, saying that he would refuse to let Boris Johnson take Britain out of the EU by suspending Parliament, adding that he would fight this with “every bone in my body.” He also said that it is possible for MPs to stop a no-deal scenario, contradicting previous comments made by the PM’s chief strategist, Dominic Cummings.
All eyes are on UK inflation data this morning, which is expected to remain close to the Bank of England’s 2% target.
