The pound closed the week on a lower note as it continued to contemplate the prospect of a no-deal Brexit. This comes as the government has said that it will walk away from trade talks with the EU if a ‘broad outline’ of a deal isn’t agreed by June. Talks are due to begin tomorrow.
This also coincides with instability in the financial markets due to coronavirus, which has now spread to every continent other than Antarctica. The FTSE 100 suffered its biggest one-day drop since the financial crisis on Friday due to coronavirus fears. Mark Carney also said that UK growth could be hindered by the outbreak taking its toll on global trade. This morning, the Bank of England issued a statement to say that it would take all necessary steps to safeguard financial stability, which has raised fears of an interest rate cut.
This week, we’ll see more data releases, with Manufacturing PMI this morning and more PMI data on Wednesday. Governor of the Bank of England, Mark Carney, will make one of his last speeches in office on Thursday, before stepping down in two weeks’ time.
