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More rhetoric of the U.K. leaving “no matter what” and no renegotiation of the Brexit deal continued to trash Sterling sentiment, sending the British pound into the red basically at the week open and never really looking back.
United Kingdom Headlines and Economic data
Monday:
- UK mortgage lending perks up in Brexit lull, consumer credit softer
- U.K. Starts No-Deal Brexit Meetings as It’s Now a Real Prospect
- Johnson presses EU to give way amid no-deal Brexit warnings
- Neither UK nor EU ready for no deal, contingency planning study finds
- Raab: UK will be better able to negotiate with EU after no-deal Brexit
- The bulk of Sterling’s losses came during the Monday session as the week kicked off with more talks from PM Boris Johnson that the U.K. will leave with or with out a deal, as well as pressure from Johnson and other U.K. officials on the EU for the unwillingness to re-open the Brexit negotiations.
Tuesday:
- Boris Johnson’s no-deal Brexit gamble hits sterling
- Boris Johnson says ball in EU’s court over no-deal after phone call clash with Leo Varadkar
Wednesday:
- UK Consumer Confidence improves two points to -11 for July 2019
- UK house price growth remained subdued in July: 0.3% vs. 0.1% in June
- There doesn’t seem to be a catalyst for Sterling’s broad move higher during the morning U.S. trading session, so it was possible that it was profit taking ahead of the highly anticipated FOMC monetary policy meeting, which turned out to be a negative for Sterling bulls as financial market players didn’t get the hints of more rate cuts ahead that they were hoping for.
Thursday:
- UK Manufacturing PMI remains stuck at six-and-a-half year low
-
Bank of England monetary policy decision: holds policy but cuts UK growth forecast
- The BOE leaves the bank rate at 0.75% on a vote of 0-0-9 to hold, all as expected.
- Asset purchases target remains at £435 billion
- Sets expectations that rates can go either in any direction
- No automatic response to whatever the Brexit outcome may be
- Generally a bullish reaction in Sterling to the event but short-lived as geopolitical updates returned as financial market focus after Trump says U.S. will hit China with more tariffs
- Irish PM open to talks with UK’s Johnson ‘without precondition’
Friday: