It was a quiet day for UK economic data yesterday, but that didn’t stop sterling from weakening against the euro and US dollar. The pound has been under considerable pressure for some time now, not least because of the uncertainty surrounding Brexit and the future implications of it.
The passporting of financial services, border controls and single market access are just a few examples of the details that need to be agreed before we withdraw from the European Union. The lack of clarity pushed sterling down to an eight-year low against the euro at one point and a two-month low against the dollar.
Today we have some key economic data releases which could see sterling weaken further if they miss expectations. We have the second reading for GDP which is expected to remain at 0.3% and the business investment numbers which are expected to show a slide from 0.6% to 0.2%. Finally, we have the CBI realised sales numbers which will provide further insight into current consumer spending.
The chart below shows the movements between sterling and the euro over the past month. As you can see, it has been a considerable – and consistent – slide against the single currency.