It appears there could be some progress made in Brexit negotiations after all. After Thursday’s news that talks were at a deadlock, sterling weakened, but reports that European leaders are expected to instruct their negotiators to begin preparing for future trade talks with Britain allayed market fears on Friday.
Friday was otherwise quiet for the UK, but the rest of this week is a busy schedule for UK economic data. Tomorrow we have the release of inflation and the retail price index, while on Wednesday, the unemployment figures are released. Thursday sees the release of retail sales and on Friday we’ll see the public sector net borrowing.
It will be fascinating to see how the UK economy has been doing in recent times and the inflation number in particular could inject more confidence into those who believe the Bank of England will raise interest rates in November.