020 7898 0500Without some good news on Brexit it is difficult to see sterling managing to reverse August’s weakening trend. There is a lack of support for sterling and a lack of belief that the Tory government is committed to sorting out a sensible exit strategy with the European Union. If this view can be changed then there is every chance that sterling will benefit as Europe doesn’t want a strong euro and the US has President Trump and all that entails.
Sterling made gains against the US dollar and euro yesterday to pull back from the eight-year lows against the single currency earlier this week. The economic data for the UK was pretty lacklustre yesterday and is slightly concerning for the future. The second reading of GDP came out unchanged at 0.3%, but it was the total business investment that was disappointing as it fell by more than expected.
In addition, the CBI realised sales highlighted that we could see further strain on the high street as the index posted a figure of -10 against an expected 0. In light of inflation and the political backdrop this was no real surprise.
