020 7898 0500Although the moves weren’t anything too dramatic, the pound managed to climb against the dollar for the second day on the trot. Following its significant weakening against the greenback on Friday last week, investors were waiting to see if there were any further Brexit developments. While it is fair to say there haven’t been as yet, optimistic comments made by Brexit Secretary Dominic Raab that he was “confident a deal is within our sights” at the start of the week were enough to boost the pound against the dollar.
However, it is vital that some concrete evidence of progress in Brexit negotiations is forthcoming; otherwise, we could see another big drop. If nothing else, Friday helped show what we might expect to happen to sterling if we exit the EU without a deal. Clearly, the markets are worried about such an event occurring and it will be hoped that an agreement can be reached before the deadline.
Today we have the UK finance mortgage approvals for August, which are expected to creep up a little from the previous month. We will also see CBI distributive trades for September. The survey’s results are expected to dip to 16 from 29, which would be quite the drop.
