The question right now is how long can the pound’s strengthening continue and to what extent? For, while it has been performing relatively consistently against the dollar of late, the gains it has made since there were signs of a Brexit breakthrough are significant. Yesterday the pound hit a nine-week high against the dollar and it has also performed solidly against the euro throughout the week.
On the political front, Theresa May and Donald Trump have bashed heads over the US President’s retweeting of a far-right group based in Britain. After May’s spokesman stated that Trump was wrong to do what he did, he countered by saying that May should focus on terrorism rather than him. The situation is likely to rumble on into the weekend.
Meanwhile, Nationwide’s house price figures came below expectations on an annual and monthly basis. However, this is not a major release and so it would likely have done little to sterling even if the Brexit news wasn’t at the forefront of everyone’s minds. Today we have the Markit manufacturing purchasing managers’ index release. It is forecast to increase from 56.3 to 56.7.