The pound slipped to a one week low against the dollar and weakened against the euro yesterday as nerves build for both the Bank of England interest rate cut and Brexit. However, it is stronger against the euro today.
Markets are currently pricing in a 52% chance of a 25-basis point rate cut from the Bank of England on Thursday. Due to a mixture of positive and negative economic data, it’s unclear whether officials will decide to lower rates.
There have also been some worries over the UK’s future relationship with the EU, as there have been signs of friction between the two sides ahead of trade negotiations. Chief Brexit negotiator, Michel Barnier, warned on Monday that the EU will never compromise on the integrity of the single market.
