Sterling is weak this morning following reports that a meeting between chief Brexit negotiators and European officials last week did not go well. A spokesman for the UK’s Brexit department said that the talks had been ‘constructive’, whilst EU officials said that the UK were trying to bully the EU into making concessions. It’s likely that clashes over the controversial backstop are behind these reports.
The pound also suffered due to the dollar finding support on the back of rising expectations of a 25 basis point cut.
The pound fell back towards 6 month lows yesterday as nervousness surrounds the UK economy, possible interest rate cuts and a new Prime Minister.
Today employment and wage growth data will be released. These figures will reveal the state of the UK labour market and may indicate whether the economy contracted in the second quarter of this year.
