020 7898 0500On a day of no UK economic data releases, the main talking point was David Davis’s comments to the Brexit committee, where he said no Brexit impact analysis exists. Later, Chancellor Philip Hammond said that the UK would meet its obligation to the EU irrespective of whether a trade deal was agreed.
So it was rather alarming when No.10 countered that statement by saying “Nothing is agreed until everything is agreed in this negotiation.” It appears that everybody is pulling in different directions at the moment; countries within the UK, political parties in the UK; and MPs within the UK government. Sterling uncertainty looks set to continue for some time yet.
Having said that, should a deal be agreed sooner than looks likely at present, the relief around the City could see some significant sterling strengthening. Today we will see the Halifax house price index which is forecast to increase by 0.2% on a monthly basis.
