020 7898 0500The big talking point throughout yesterday was David Davis’s resignation from his position as Brexit secretary, at least until Boris Johnson followed later in the afternoon. Dominic Raab was announced as his replacement and the markets appeared to be buoyed by Davis’s comments that he wants Theresa May to stay as prime minister. Sterling had held firm against the euro throughout the day and made some gains against the dollar, but then came Johnson’s resignation and the pound almost immediately reversed its position.
Today is extremely busy for UK economic data, with the balance of trade figures for May announced this morning. We will also see construction output for the same month, as well as manufacturing and industrial production figures. Every release is forecast to have bounced back from the month before and, if this is shown to be the case, we could see some sterling strengthening.
