020 7898 0500The pound fell below the €1.10 level against the euro for the first time since 11 September 2017 yesterday amid continuing Brexit concerns. Fears that we could be headed for a no-deal Brexit were reinforced with news that the French Prime Minister is preparing for contingency plans for no deal.
Against the dollar it was a different story, with the pound just about holding its own. We could see that situation change later, depending on what the US GDP growth rate for the second quarter of 2018 is.
There were no releases of note yesterday, although Theresa May distanced herself from comments made by Chancellor Philip Hammond – no doubt in an attempt to placate Tory MPs calling for Hammond’s head. It remains to be seen whether his warning that a no deal Brexit could cost the UK an extra £80 billion in borrowing costs is true – opinion is currently divided.
Today, we have the Nationwide house prices for August. Year-on-year, they are expected to have increased by 2.6%, from 2.5% in the previous period.
