The pound held steady yesterday, but has weakened this morning as it braces itself for the Bank of England’s interest rate decision on Thursday. Despite a series of positive data last week, it’s still thought that the BoE could decide to cut rates. The markets are currently pricing in roughly a 60% chance of a cut.
In Brexit news, the Irish Prime Minister, Leo Varadkar, has said that the EU will have a “stronger” negotiating team in trade talks with the UK. The Taoiseach also warned that reaching agreement would become harder if the UK sought to diverge from EU rules and said that it’s likely there will need to be an extension to the transition period.
Meanwhile, the US Treasury Secretary, Steven Mnuchin, has said that he hopes that the UK will agree a post-Brexit trade deal with the US this year.
