020 7898 0500Sterling continued its push higher against both the US dollar and euro on Friday. The unexpected US presidential election result has put the cat amongst the pigeons with regards to the upcoming elections in Italy, France and Germany. What was previously unthinkable is now possible. As a result, the euro weakened against sterling while the continued fallout from Trump’s election saw sterling strengthen against the dollar.
Meanwhile, ratings agency Standard & Poor’s still has its doubts over the UK economy. It stated on Friday that a hard Brexit in which Britain loses its free access to the European Union market now looks like the most likely outcome. According to S&P, it appears that the UK Government had not yet accepted that the EU is unlikely to yield on the indivisibility of its four freedoms – the free movement of people, capital, goods, and services.
Looking to the week ahead we have some key economic data set for release in the UK. Inflation data is due for release on Tuesday and will surely attract plenty of attention following recent headlines. On Wednesday, the UK releases its employment numbers, while Friday sees the release of the all-important retails sales data.
