Partner Center
Find a Broker
Mixed week for Sterling as it was a battle of political proposals to stimulate the U.K.’s economy vs. global risk sentiment and weak U.K. economic updates. In the end, Sterling closed the week as a net loser on another round of disappointing business sentiment data.
United Kingdom Headlines and Economic data
Monday:
- The price of U.K.property coming to market falls by 1.3% (-£3,904) this month
- UK’s Johnson drops corporate tax cut plan in bid to woo voters – this headline was likely the catalyst for Sterling’s strong start to the week as tax cuts do tend to stimulate economies, bullish for the currency.
- Boris Johnson maintains lead in UK leadership race
Tuesday:
- EU defies Boris Johnson and declares UK will only get a ‘bare-bones’ trade deal or a no-deal Brexit next year
- U.K. Manufacturing output volumes in the quarter to November continued to fall
- Boris Johnson and Jeremy Corbyn go head-to-head at debate
- Broad Sterling move lower on the session, likely on the weaker-than-expected manufacturing data & EU comments mentioned above, but also likely on the broad risk aversion sentiment, sparked by both geopolitical headlines (Trump threatens higher tariffs if China doesn’t make a trade deal) and another weakening economic outlook from U.S. corporations.
Wednesday:
- Boris Johnson wins by a nose in Britain’s unsatisfying election debate
- UK’s Johnson raises prospect of 10 billion pound payroll tax cut
Thursday:
- October UK Public Sector Borrowing Hits Five-Year Monthly High
- UK’s Labour unveils ‘radical and ambitious’ plan to remake Britain
- UK budget deficit hits five-year high, before election give-aways
Friday:
- Sharpest drop in UK private sector output since July 2016 – this was the catalyst for the big drop in the British pound versus the rest of the major currencies as the weakness in the business sector seems to be accelerating.
- UK Conservative lead over Labour narrows to 10 points: Panelbase poll