020 7898 0500Sterling ended its brief rally on Friday when it weakened against the euro. It shows yet again just how volatile and unpredictable sterling markets are at the moment.
On Friday we saw UK mortgage approvals slide for the month of February but they still stayed above the average for 2016. Re-mortgaging also dropped despite the record-low interest rates. The figures released by the British Bankers’ Association (BBA) caused concerns in the markets as it is feared that we could see house prices decrease.
Much of this week’s focus will be on the triggering of Article 50, which Prime Minister Theresa May said would happen this Wednesday. The UK will submit a formal letter to the European Union, officially notifying the EU of the UK’s intention to leave the union. The letter will be published.
It is unlikely that any surprises will be announced on the 29th, so the event should be well priced in. Many analysts, however, still expect the pound to move downward on the day.
In terms of economic data, net lending figures will be released on Wednesday. This figure is quite important because of the correlation between lending and consumer spending and consumer confidence.
The week will finish with the final reading of Q4 GDP and current account data on Friday.
