020 7898 0500The pound made some healthy gains against the euro and dollar towards the end of yesterday, as Dow Jones reported that the Brexit divorce terms could be settled as early as next week. The divorce bill has been one of the many bones of contention and agreeing terms would be seen as a significant step forward in the quest to secure a Brexit deal before the deadline.
Of course, nothing is agreed until everything is agreed, but the markets will take anything they can get at the moment. We can expect some significant sterling moves depending on how the next few weeks go. There does appear to be an increased focus on securing a deal on both sides of late, although we still do not know what the terms of any exit will be. Then there is the problem of whether Theresa May will be able to get her plans through parliament.
After a quiet start to the week, things pick up today, with the balance of trade figures for August on the schedule, as well as construction output, and industrial and manufacturing production for the same month. We will also see the GDP figures for August and the three-month average. Together, we should get a genuine sense of how the UK economy has fared of late.
