020 7898 0500Yesterday was quiet for UK economic data and sterling traded pretty sideways despite the show of unity between Philip Hammond and Liam Fox. In a joint article in The Telegraph over the weekend they stressed any deal would not be indefinite or a ‘back door’ to staying within the union. This was a key joint statement as they were both seen as being on opposite sides in the run up to Brexit.
Today we have some key economic data in the form of the inflation data. Headline inflation is expected to remain constant at 2.7%. Based on the recent signposting from the Bank of England, the figure will likely be ignored, despite it being above target levels. During the August meeting, the eight-member Monetary Policy Committee voted 6-2 in favour of keeping interest rates on hold.
Wednesday’s average earning data will be closely monitored to see whether the pace of inflation continues to outpace salary growth. In addition, rail fares and season tickets are set to soar at their fastest rate for four years in a move likely to prompt fury among commuters and other passengers. Rail fares are pegged to the Retail Prices Index of inflation for July which is expected to post a reading of 3.5% tomorrow.
