020 7898 0500The pound had a mixed day as it was stronger against the euro (EUR) while sliding against the US dollar (USD). The main catalyst for the rise against the euro was the cautious tone from European Central Bank (ECB) President Draghi. While the ECB surprised the market by cutting its asset purchases to €60 billion per month, from the current €80 billion, it was the tone that sent the euro lower. Mr Draghi said “the risks surrounding the euro area growth outlook remain tilted to the downside” resulting in the euro being the main loser, the US dollar the main winner with sterling in the middle.
In the meantime, the housing sector continued to perform in a robust manner according to the Royal Institution of Chartered Surveyors. Its house price index continued to show price growth as supply of homes coming onto the market failed to increase for a ninth consecutive month. Meanwhile it was the final day of the Supreme Court hearing about Brexit process with no further clues as to which way the judgement will go. Earlier in the quarter the High Court ruled that Parliament must give the go ahead and this hearing is the UK Government’s appeal against that. A final decision from the Supreme Court is not expected until January.
