020 7898 0500The pound fell once more against the euro and US dollar on Friday as rumours that Tory backbenchers will move to oust Theresa May circulated. The uncertainty the situation raises has spooked the City and it does raise the question of what direction future Brexit negotiations could take if May is replaced. There is also the possibility of another general election.
Last week wasn’t great for sterling, as disappointing data was released throughout the week. With the exception of Wednesday’s service sector PMI – which came in above expectations – all major releases showed a decline.
It is a very quiet week for UK economic data, with Tuesday being the day for data releases. The balance of trade report is released then and we’ll also see the manufacturing and industrial figures that day. Because data is thin on the ground, we expect any sterling volatility will result from data elsewhere, or political events closer to home.
