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GBPDomestic political tensions were on a rolling boil throughout yesterday’s trading; the spectre of a leadership change undermined confidence in Sterling. The Euro climbed to push below the 1.1300 mark and the Pound fell to near 1.2950 against the Dollar. Fragile risk appetite was also significant in curbing the UK…
GBPUK government borrowing figures showed the year-to-date deficit, for the first six months of the year, declined to £19.9bn from £30.6bn last year, a 16-year low and well below consensus forecasts. Michel Barnier, EU Chief Negotiator, stated that a Brexit deal was 90% done but that the Irish border issue…
GBPUK Retail Sales printed well below consensus forecasts, with core retail sales contracting 0.8% since August. The annualised figure printed well below the forecast of 3.7% at 3.2% for September, however, the August figures were revised higher. The data had little overall market impact as attention was focused on political…
GBPHeadline UK CPI inflation fell to 2.4% in September, below a forecast of 2.6% and well below August’s 2.7% print. Cheaper food and drink prices also hit core CPI data that fell to 1.9% from 2.1% previously. The Pound fell against its peers following the data but managed to hold…
GBPThe first UK economic data of the week provided a welcome distraction. UK unemployment remained at 4.0%, a 45-year low. Market focus was on average earnings, and headline year-on-year earnings rose to 3.1% from 2.9%, the strongest figure since 2009, while the core rate edged up to 2.7% from 2.6%…
GBPWithout the distraction of UK economic data, Brexit developments dominated Sterling trading again. Wednesday’s European Council meeting is earmarked as the point at which the EU will decide to press ahead with a November Brexit meeting to sign off withdrawal agreement and framework for a trade deal. Sterling recovered some…
GBPIn the absence of tier one UK data, Sterling was given wings by renewed Brexit optimism. GBPUSD had fallen to 1.3037 by midday, but gained 108 pips to close at 1.3145. The Euro story differed only in an earlier dip to 1.1376 before rallying 70 pips to close at 1.1446….
GBPMarket caution surrounding Brexit negotiations meant Sterling drifted lower yesterday morning. A Whitehall spokesman stated that Northern Ireland backstop proposals would be published in due course and that the EU needed to move its negotiating position. In the Eurozone reports it emerged that the European Commission would not formally adopt…
GBPFriday morning saw EU sources reporting that the Brexit divorce deal with Britain was very close, providing a safety net for Sterling sentiment. Reports also emerged that the EU was preparing to offer a supercharged free-trade deal incorporating elements of trade and security. Sterling gained on its peers in anticipation…
GBP Yesterdays UK data docket was empty leaving the Pound’s fortunes to be dictated by global influences. With the UK party conferences out of the way Brexit negotiations are taking on a more serious tone. Reports emerged that the UK was considering fresh proposals on Northern Ireland, potentially UK remaining in…