The pound has been the best performing currency over the past week, as investors are firm in their belief that the UK will not exit the EU without a deal. Of course, nothing is certain as yet, but as the saying goes ‘buy on the rumour, sell on the fact’ – and there is a general feeling that, somewhat ironically, the chances of a no-deal Brexit are receding with each passing day.
Mortgage approvals came in at 38,779 for December, which was slightly below the 39,000 the markets had been expecting. CBI distributive trades for January improved to 0 in January from -13 the previous month, although this was still below the 2 analysts had predicted. The figure is clearly headed in the right direction though.
There are no economic data releases on the schedule today, but then everyone is focused on tomorrow’s Parliamentary vote on the Brexit deal anyway. In its current form, May’s deal has virtually no chance of being agreed, but there have been several amendments that could change the course of the negotiations so far. Investors will be hoping that a no-deal Brexit is officially ruled out – at least on the part of the UK.
