“Analysts will be following the pound closely today as a number of factors have the potential to drive the currency...
from William Anderson Jones, Head of UK Corporate Dealing at RationalFX
Prime Minister Theresa May’s trip to Brussels will be the key focus for the markets as analysts watch for any signs of progress in negotiations. The pound is steady against its peers ahead of the trip, as investors and political observers alike look for the first clues from EU’s negotiators that they are prepared to allow Brexit talks to proceed to the next phase ahead of December’s summit.
Several economic factors at home could weigh on sterling, given Wednesday’s bleak growth forecast for the next few years and yesterday’s lacklustre GDP data. A new survey released revealed that UK consumer confidence has fallen to its lowest since the Brexit on the back of the BoE’s recent interest rise. This comes a day after GDP data revealed the large role that consumer household spending played in the UK’s economic growth, the survey will concern investors should a lack of consumer confidence begin to manifest in future data releases. Depending on the state of future economic data and the state of Brexit negotiations, analysts may be preparing themselves for more turbulence as the year comes to an end.”