Sterling slipped a further 1% against the euro yesterday as official UK data showed that GDP grew by just 1.8% in May, a disappointment compared to the 5.5% that was anticipated. The economy remains nearly 25% down on February.
Other worries for the market include the second wave of Covid cases in the US, which has hit stocks, the potential for a UK interest rate cut below zero, and the possibility of Brexit trade talks coming unstuck.
This morning we already have inflation rate data, which came in as expected at 0.6% in the year to June. Tomorrow is another big day for data with earnings and unemployment data, as well as a speech by Bank of England governor Andrew Bailey.
