GBP strengthened by around 1% on news of a potential compromise on the Internal Markets Bill. However, this falls short of a U turn and may not be enough to satisfy other powers, including both EU and US trade negotiators.
Inflation was 0.2% in the year to the end of August, but while down on last month’s 1%, this is mainly caused by the Chancellors cut in VAT to the hospitality industry and the Eat out to Help Out scheme.
Today we have our own central bank’s interest rate decision and while no change is expected, any suggestion that we could be approaching negative rates could move sterling downwards.
Another busy week ends tomorrow with retail sales data.
