Sterling is weak this morning, hitting two-year lows against the dollar. This comes due to a weekend of rhetoric surrounding a no-deal Brexit. Boris Johnson unveiled a special Brexit cabinet committee tasked with handling preparations for a no-deal, which is now the government’s ‘number one priority.’
The new committee will meet for the first time on Tuesday and will be chaired by Michael Gove, who warned that a no-deal scenario is a “very real prospect.” This morning, Dominic Raab has said that the government are ‘turbo-charging’ no-deal Brexit preparations, and added that if a deal was to be agreed upon, it would have to include the abolition of the backstop.
Consumer confidence figures will come out for the UK on Wednesday, whilst Bank of England Governor, Mark Carney, will release his statement on interest rates on Thursday. He’s not expected to announce any rate cuts, but the markets will be listening for his thoughts on the UK economy and future rate cuts.
