After positive U.K. updates lifted Sterling early in the week, Brexit uncertainty and negative commentary from Bank of England members sent GBP lower to a mixed ending against the other major currencies.
United Kingdom Headlines and Economic data
Sterling saw strong gains on the session, likely a combination of both the positive economic updates from the U.K., but also positive COVID-19 related news (large trials for the Oxford COVID-19 vaccine begin in the U.S.).
Sterling turned lower for the week for good, likely on negative commentary from Bank of England members (Bank of England policymakers warn of bigger risks for UK economy, UK economy might take years to recover from COVID hit-BoE’s Vlieghe) as well as Brexit uncertainty (Barnier says no change following meeting with Britain’s Brexit negotiator).
Risk sentiment turned negative during the Thursday trading session, sparked by weak economic updates around the globe (e.g., Eurozone Services Business Activity Index: 50.5 in August vs. 54.7 in July, 115,762 U.S. Job Cuts in August, recovery in China’s services sector loses a step).