020 7898 0500Sterling held on to the gains it made from Friday despite the news over the weekend. To recap – the catalyst for the positive sterling move came after the UK government officially acknowledged its financial obligations to the EU post-Brexit. It is hoped that this will lighten the mood for the second round of Brexit negotiations which started yesterday.
In the meantime, we have some key economic data released this morning. The Bank of England’s preferred measure of inflation is set for release in the form of the consumer price index. Inflation is expected to remain steady at 2.9%; any deviation from this reading could result in further sterling volatility.
The severity of the movement will be dependent on how the market interprets the reading, what it means for interest rate increases and what impact this will have on consumer confidence. In addition, BoE Governor Carney is due to speak at the unveiling of the new £10 note featuring Jane Austen.
