GBP: sterling drops to a ten-week low against the dollar

Sterling dropped to a ten-week low against the dollar yesterday and didn’t do all that brilliantly against the euro either. As it continues to drop down towards $1.27, it has
now fallen below the €1.12 mark. These are troubling times for the pound and in the last 10 days alone, GBPUSD has shed 4.5 cents. The volatility looks set to continue until
we have some clarification on what sort of Brexit deal we can expect (there’s a sentence I’ve written 623,171 times).

CBI distributive trades for October was released and came in at 5 from 23 in the previous month and well below an expectation of 27. I don’t have to tell you how disappointing
that release is. However, it is unlikely that this had any bearing on currency movements, which is just as well considering.

The highlight from the UK today is the Gfk consumer confidence reading for October which is expected to have dipped a little to -10 from -9 in September. Tomorrow is a busier
day, with the Bank of England’s interest rate decision and Nationwide housing prices for October.