Sterling weakened further yesterday after both David Frost and Michel Barnier laid out their remarks on how recent Brexit talks have progressed. David Frost said that “any agreement needs to honour” principles put forward by the Prime Minister. He added, “The EU’s proposals so far, while a welcome response to the Prime Minister’s statement, do not do so.”
Michel Barnier said that the two sides remain “far away” from a deal, and reiterated that as long as sticking points remain, no-deal would be a possibility. This news has not fared well with the pound. The risk of a no-deal scenario means more uncertainty and increases worries as the Brexit transition deadline draws closer.
As well as Brexit concerns, economic concerns continue to weigh on the pound. Bank of England Official, Jonathan Haskel, said he’s worried about the pace of economic recovery, and explained that it heavily depends on whether the public feel that it is safe to go out.
According to data released this morning, consumer confidence in the UK remained unchanged over the past two weeks at -27, as consumers appear to be slightly more confident as lockdown loosens across parts of the UK.
UK retail sales have come in this morning, showing a jump of 13.9% month-on-month in June of 2020, following an upwardly revised 12.3 percent rise in May. This is a record increase in retail sales, much better than market forecasts of an 8% rise
