020 7898 0500Sterling has performed better of late as progress on Brexit negotiations has been achieved. However, it has only moved to the “top” (i.e. strongest level) of its recent range bound movement. For significant appreciation we will need to see positive developments in these negotiations. Of course the reverse is true if negotiations stall and/or go badly, in which case we would most likely see significant sterling weakness.
Looking ahead to this week, we have the CBO industrial trends orders for December later today, but the rest of the week is pretty quiet until Friday. That is when we will learn how the UK economy has grown.
We might also learn when phase two talks will actually commence, as May and Juncker currently appear to be in disagreement.
