020 7898 0500Following the atrocities in Manchester, sterling was slightly weaker. Much of the UK news was understandably centred on this tragic incident, and economic data and political campaigns for the UK general election took a back seat.
Economic data showed that in April UK government borrowing was at its highest level in three years hitting £9.6 billion, much higher than forecast.
The UK CBI realised sales number was also released and showed that retail sales growth had slowed in May, according to a survey by the UK’s biggest retailers. The balance of firms reporting an increase in sales fell back to only 2%, which will be of some concern and closely monitored. This drop-off could be due to the timing of the Easter holidays, although many are concerned about the long-term effect of higher inflation on the economy.
Meanwhile, Bundesbank board member Andreas Dombret told Bloomberg that ‘it doesn’t look like a soft Brexit to me at all. It looks like either a hard Brexit or a very hard Brexit.’ The EU recently reaffirmed its demand that the UK settle its outstanding debts, and refused to discuss a future trading arrangement until this demand is met.
In light of the events in Manchester, it is yet to be confirmed when political parties will return to the campaign trail. The Scottish National Party and Green Party yesterday cancelled the launch of their manifestos.
In terms of economic data, the calendar is fairly light with no major economic data set for release today.
