The pound was weaker against both the dollar and the euro yesterday, partly due to reports that the government is abandoning hopes of a Brexit trade deal with the EU. The global markets are also suffering due to US-China tensions, which hasn’t fared well with sterling.
Sources have said that there is an assumption that there “won’t be a deal”. As we know from recent history, the pound never fares well at the prospect of a no-deal scenario. However, this is just speculation at the moment.
Today, we should find out how the latest round of talks have progressed. The last round of talks for July have now finished, so it will be interesting to hear about the outcomes, if any. Michel Barnier will speak at a press conference this evening to reveal the latest news from an EU perspective.
Bank of England Official, Jonathan Haskel will speak today on monetary policy and the state of the UK economy.
Tomorrow morning, retail sales data will be released, which will also reveal how the economy is faring.
