020 7898 0500Sterling gained across the board yesterday despite the lack of any significant UK economic headlines. Possible explanations varied; on-going Brexit speculation, Trump announcing his 100 day plan, worries over the state of the Italian banking system, the list goes on.
There were rumours about significant GBP/JPY movements which actually triggered and pushed other sterling currency crosses higher. There was also speculation that the pound gain was due to a softer tone from PM Theresa May at the CBI Conference in London.
May hinted at the government seeking a transitional Brexit deal when negotiations with the EU begin in order to avoid the “cliff edge” that businesses fear. She also reversed her previous pledge to force companies to make the direct appointment of workers or trade union representatives to boards, instead insisting that they will have “a voice” in company boardrooms. However, sterling’s aggressive move happened over an hour after she made those comments.
Today we have a few second-tier data releases coming up, as we’re approaching the Chancellor’s Autumn Budget on Wednesday. Markets will be keeping a close eye on public sector borrowing figures and Bank of England MPC Member Kristin Forbes’ speech.
