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Negative Brexit developments were once again the focus of pound traders to start the week, but the bulls were able to recover some losses after British MPs block the pursuit of a no-deal Brexit later in the week.
United Kingdom Headlines and Economic data
Monday:
- Rightmove U.K. HPI: The price of property coming to market falls by 0.2%, the first monthly fall so far in 2019
- IHS Markit UK Business Outlook: Business optimism edges up in June, but capital spending plans are the weakest since 2011
- PM candidates set high bar for Brexit talks: no Irish backstop
- Brexit Talks Get More Hostile as EU Considers Sweeteners to Deal
- The combination of news of “no Irish backstop” from PM candidates and a bad meeting between negotiators upped the odds of a no-deal Brexit scenario, which had Sterling traders quickly selling in the Monday and Tuesday session.
Tuesday:
- U.K. Wages Rise at Fastest Pace Since 2008 in Tight Labor Market
- No-deal Brexit looms larger as Johnson, Hunt declare backstop ‘dead’
Wednesday:
Thursday:
- UK retail sales jump unexpectedly in June boosting sterling – this event correlates with the start of pound’s recovery for the weak.
- MPs vote to block Boris Johnson from forcing through a no-deal Brexit
- Pound Gains as Barnier Comments on Brexit Border Spur Optimism
- Both Barnier’s comments and the blocking of Boris Johnson’s likely later attempt at a no-deal Brexit sparked one final bullish move of the session to recover most of the week’s earlier losses.
Friday:
- UK MPs threaten to drag Queen Elizabeth into Brexit chaos
- EU plans to offer Boris Johnson no-deal Brexit extension
- Iranian forces seized 2 British tankers on Friday in an escalation against the US and UK – Sterling broadly moves lower against the majors into the Friday close, possibly on this headline that likely drew in risk-off and bearish pound sentiment
