GBP: Could the ‘special relationship’ with the US help the UK’s Brexit?

This week’s economic data has really taken a back seat as the world geared up for the conclusion of the US presidential election. The unprecedented outcome has got the market guessing as to what the result means for future US policies and how best to assess the risk.

The UK continues to assess how the relationship will look with President Elect Trump. It was reported yesterday he had spoken to UK Prime Minister Theresa May and invited her to Washington. In addition, Downing Street sources said that the two also affirmed the importance of the ‘special relationship’ between the two countries in the phone call. There is speculation that the UK could benefit from Trump’s election as Brexit starts to take effect and trade agreements get drawn up.

Meanwhile, it was quiet data-wise in the UK, save for the RIC house price survey. The headline figure posted a better than expected number. In October, surveyors saw prices rises outnumbered those seeing falls by a majority of 23%. This was largely due to a ‘dire shortage’ of housing in the UK. RICS stated that house hunters were returning to the market after the EU referendum in June, but there are not enough properties to supply the demand.

The market will be slightly quieter today as the US is partially closed in observance of Veterans Day. The only figures out from the UK are construction data.