020 7898 0500There were no major economic data releases from the UK yesterday, so any sterling movements were likely to come from events elsewhere or continued Brexit uncertainty. And so it proved, as the ECB’s refusal to change course on its monetary policy helped sterling make some very slight gains against the euro, while a strong dollar plus concerns over a no-deal Brexit saw the pound weaken against the dollar.
Towards the end of the day, Michel Barnier rejected the customs proposals in the prime minister’s Chequers plan. While he conceded that the EU was open to a ‘customs union’, it will still be a blow for Theresa May. Barnier’s motives could be to encourage the UK to just a full customs union, but it is clear that May does not have her party on side with that proposal. Once again, she is stuck between a rock and a hard place.
Today we will see the Nationwide housing prices for July and we can expect further reaction to what Barnier said in his joint press conference with Brexit secretary Dominic Raab.
