020 7898 0500Just like the euro, sterling suffered losses against the US dollar on Friday after Federal Reserve Chair Janet Yellen indicated that a rate hike in December was very much a possibility. Against the euro, sterling extended last week’s two-month highs on Friday.
Whilst many market participants expect weaker growth and turbulence around upcoming negotiations with the European Union to weigh on the pound throughout 2017, especially around the triggering of Article 50, some have begun to argue that a 20 per cent fall in the value of the pound since last December is enough of a reason to kick off a rebalancing of the economy.
This week sees net borrowing data released on Tuesday, the Chancellor’s autumn budget on Wednesday and a second estimate of the UK’s third quarter growth figure on Friday. All eyes will be on Phillip Hammond, our Chancellor, and what measures he is planning to put in place to support the economy next year.
