After a weak start to the day, sterling strengthened against the euro and the dollar yesterday due to some cautious optimism surrounding Brexit negotiations. This morning, the pound is steady against the euro but weaker against the dollar.
Michel Barnier travelled to London for talks with David Frost, and said that he is determined to get a deal. Michael Gove said that he is confident that Britain can secure a free trade deal with the EU and that the EU has made progress in granting the UK third country status.
There have also been reports that the UK will remove controversial elements of the Internal Market Bill if a trade deal is reached.
This afternoon, Chancellor Rishi Sunak is due to announce extra financial support measures for the UK economy. Governor of the Bank of England, Andrew Bailey, will also make a speech later.
PMI data released yesterday showed that manufacturing and services sectors have slowed slightly since August. However, the figures still beat expectations for September.
