It was a rare quiet week for Sterling as the usual major moving Brexit headlines were few and far between after the U.K. government secures a general election date. Overall, it was a positive week for the British pound as the odds of a no-deal Brexit continue to rise, only falling to the NZD and AUD at the end of the week.
United Kingdom Headlines and Economic data
Monday:
- Brexit extension announced as Boris Johnson pushes for December election
- U.K. Retailers report record high stock levels as Brexit deadline looms – CBI
- EU nations agree Brexit delay until Jan. 31 as PM Johnson seeks election
- Boris Johnson says he will table new bill for 12 December election after losing vote
- Boris Johnson fails in third attempt to call early general election
- UK set for a December election as opposition Labour party backs calls
Tuesday:
- U.K. Annual house price growth remained subdued at 0.4%
- U.K. consumer credit muted in September amid Brexit uncertainty
- Labour to back early general election
- UK government will accept opposition amendment to hold election on December 11: BBC
Wednesday:
- U.K. shop prices continue to slide
- Brexit party considers pulling out of hundreds of seats to boost Tories
- It was during the U.S. trading session where broad global risk sentiment generally dictated Sterling’s performance. After news of the Federal Reserve cut interest rates another quarter point and lowered expectations of an interest rate hike any time soon, global risk-on sentiment seemed to have become the major market driver, pushing Sterling higher against the safe havens, while falling to the comdolls (ex-Loonie which really had a tough week after the BOC meeting).
Friday:
- IHS Markit / CIPS UK Manufacturing PMI: Manufacturing constrained by ongoing political and economic uncertainties in October
- Brexit Party’s Farage set to fight every seat in poll battle against PM Johnson
- Downing Street defends Brexit deal after Trump claims it obstructs US-UK trade
- UK manufacturing decline slows after new Brexit stockpiling rush: PMI
