Yesterday was a quiet one for UK data. Except for some mortgage data, it was really the fallout from Hammond’s Autumn Statement that drove currency movement. Sterling was on the front foot after Chancellor Philip Hammond announced an increase in spending on those areas of the economy that can help boost productivity, namely infrastructure and innovation which are considered high value investments, and as such deemed positive for the economy.
The pound has been supported in recent weeks after the election of Mr Trump, which has led the market to believe that the UK will strike favourable trade deals with the US, negating some of the effects from Brexit and the European trade deals the UK could be missing out on.
Today sees the second estimate of UK Gross Domestic Product (GDP). It will be interesting to see if this is revised up or down especially as Hammond claims that growth in the UK will take a hit as we exit the EU, so this figure will be watched closely for clues of future UK growth.