Sterling strengthened yesterday, shrugging off increasing expectations of an interest rate cut. The markets are looking ahead to retail sales data, which is due to be released this morning. This could give further indication about whether we should expect a rate cut this month. Retail sales are expected to show a rise of 2.6% year-on-year and 0.5% month-on-month.
A series of PMI data, due to be released at the end of next week, will also give a strong indication of the health of the UK economy.
The EU negotiating team is gearing up for talks with the UK about the post-Brexit relationship by holding a series of seminars for diplomats from the 27 member states. Presentations outlining details of the discussions have been published online, providing some insight into the EU’s approach.
