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With no major Brexit breakthroughs or top tier economic updates from the U.K., it was a choppy, low volatility week for the British Pound.

Overall, the pound closed as a net loser on Friday, likely due to the continued uncertainty with Brexit talks, and a round of net negative economic updates.

Overlay of GBP Pairs: 1-Hour Forex Chart
Overlay of GBP Pairs: 1-Hour Forex Chart
GBP Weekly Performance from MarketMilk
GBP Weekly Performance from MarketMilk

United Kingdom Headlines and Economic data

Monday:

Expansion of U.K. service sector remains marked in September

PM Johnson plays down technical failure of COVID-19 testing data system

Tuesday:

EU says that no-deal Brexit becoming ever more likely

UK construction activity expands sharply in September

UK hospitality trade warns of more than half a million job losses

In addition to negative Brexit sentiment, volatility and negative global risk sentiment was a likely contributor to Sterling’s weakness, which picked up quickly in the financial markets during the U.S. session after U.S. President Donald Trump halted Covid-19 relief aid talks until after election.

Wednesday:

UK House prices in September 2020 were 7.3% higher than the same month a year earlier

UK mortgage applications at 12-year high as house prices keep rising

U.K. plans to quit Brexit talks if no deal clear next week

UK’s Frost says October 15 is deadline which both sides must take into account

Thursday:

U.K. house sales activity predicted to be lower in 12 months – surveyors

UK publishes updated post-Brexit border operating model

Bank of England’s Bailey ready to use policy firepower, sees downside risks

Bank of England warns that full Brexit could be bumpy for investors

Bank of England Financial Policy Summary and Record – October 2020

Friday:

U.K. Gross domestic product rose by 2.1% from July to August –  “not even half the median forecast in a Reuters poll of economists and the slowest increase since the economy began to recover in May from a record slump.”

U.K. Production output rose by 0.3% between July 2020 and August 2020, with manufacturing providing the largest upward contribution, rising by 0.7%

The UK total trade surplus, excluding non-monetary gold and other precious metals, increased £3.8B to £7.7B in the three months to August 2020

The British pound broadly rallied during the Friday session as sentiment on the Brexit story improved on Friday (Brexit deal close but EU seeks more before starting final talks) and we saw more pandemic help from the government (UK’s Sunak offers lockdown-hit companies more help to keep jobs)