020 7898 0500Sterling weakened against the dollar and euro yesterday as the fallout from the news that trade talks between the EU and UK won’t happen until February 2018 at the earliest. This came against a wave of expectation that a breakthrough had been made in Brexit negotiations and, while that is certainly true, it is clear that there is far more work to be done.
Speaking of Brexit, Theresa May told MPs that the Brexit deal is good news for both remain and leave voters. It is becoming increasingly difficult to see how May can please all of the people all of the time, especially when the UK seems so divided on the best course of action. She is currently in the unenviable position of being between a rock and a hard place.
Today’s key release is the inflation figure which is expected to jump from 3% in October to 3.2% in November. Let us hope this proves to not be the case, as UK households will only feel the pinch more, given that wages are not rising at the same rate. The Bank of England’s decision to increase interest rates will be thrust into the spotlight if inflation continues to keep rising, although it is difficult to see exactly what they can do to curb it during these uncertain times.
