Another relatively mixed and quiet week for Sterling pairs as counter currency flows were a strong driver. But ultimately, the British pound finished as a net loser, likely on weak economic updates, negative polling for the Tories, and a dovish turn in sentiment from the Bank of England.
United Kingdom Headlines and Economic data
- U.K. Service sector flatlines in October at 50.0
- UK economy starts fourth-quarter on weak note as Brexit hits orders
- UK consumers keep lid on spending in October: surveys
- U.K.’s Johnson begins election battle, vowing Brexit and casting rival as ‘Stalin’
- General election: Conservative lead drops two points to 11% – poll – the broad weakness in Sterling on the session could arguably be attributed to this development as it raises the odds of a hung parliament situation (i.e., raising the odds of no action on Brexit)
- U.K. House prices in October were 0.9% higher than in the same month a year earlier
- UK’s Conservatives and Labour vow to spend big in battle for votes
- Two BOE Members Unexpectedly Vote for Rate Cut as Outlook Sours – this is a big change from the usual unanimous vote to hold rates, so obviously this was the catalyst for the spike lower in Sterling pairs during the Thursday session.
- BOE’s Carney on Brexit, Trade Uncertainty, U.K. Economy: Statement