The pound is well supported against the euro and the dollar this morning on cautious optimism that a Brexit trade deal will be finalised next week. Reports suggest that France has accepted that their fishing rights will be reduced in UK waters, which is a major hurdle. However, there are still compromises to be made.
Boris Johnson reiterated yesterday that he is “confident [the UK] will prosper” outside the EU if a trade deal is not agreed with the EU. Chief negotiator, David Frost, told reporters: “We’re working very hard to get a deal but there’s quite a lot to do.”
Inflation rate figures for the UK came in this morning. Annual inflation rate increased to 0.7% in October from 0.5% in September, above forecasts of 0.6%. It is the highest reading in three months, lifted by rising prices of clothes, food and second-hand cars. The month-on-month figure stalled at 0%.
