Just a day after Theresa May managed to defeat a Tory coup, she received another Brexit blow as EU leaders rejected her pleas to salvage her Brexit deal. The European Commission President, Jean-Claude Juncker, said it was difficult to imagine May getting any deal through Parliament at the moment and that it was not up to EU to satisfy the demands of rebellious MPs.
Sterling weakened once more against the euro and dollar, and dropped back to $1.25 to cap an extremely volatile week. There is much to be concerned about at present and the threat of a no-deal hangs over the currency markets. The pound will plummet if the UK exits the EU without securing a deal, which will likely compound the misery felt in the aftermath. These are troubling times and it is fair to say the whole process has not been managed well.
There’s nothing on the UK economic data schedule for the first two days this week, but on Wednesday we will see the inflation rate for November. It is expected to dip to 2.3$ from 2.4% the previous month. We will also see the Bank of England’s interest rate decision on Thursday, but it would be a miracle if rates were hiked this time around.