020 7898 0500The pound was knocked off its perch on Monday morning when the latest UK manufacturing data came in below expectations. The purchasing managers’ index showed that the sector was still expanding but lost some of the previous month’s momentum, which was also revised downwards. Exports grew more slowly, whilst domestic demand for consumer goods eased amidst uncertainly and higher inflation.
On the Brexit front, news headlines focused on Gibraltar. The debate was sparked by draft Brexit negotiating guidelines published by the European Union on Friday. These stated that any decisions affecting Gibraltar would be run past Spain. On Sunday former Tory leader Lord Howard said the Prime Minister would defend Gibraltar, likening the situation to Margaret Thatcher’s defence of the Falklands. It’s a first sign that the forthcoming negotiations will be driven by emotions and pride.
