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.
Overlay of GBP Pairs: 1-Hour Forex Chart
GBP Weekly Performance from MarketMilk
United Kingdom Headlines and Economic data
Monday:
UK ready to walk away from Brexit trade talks over state aid demands
Tuesday:
UK Manufacturing production rises at fastest pace since May 2014 as re-opening of economy continues
Net mortgage borrowing was £2.7 billion in July, while approvals for mortgages for house purchase increased to 66,300.
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.).
Wednesday:
BRC: UK retailers step up their discounting in August
UK/Japan trade deal good for consumers, companies, Johnson tells Abe
U.K. house prices surge to all-time high in August
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).
Thursday:
Sharpest increase in U.K. service sector activity since April 2015
U.K. Races to Fix ‘Critical Gaps’ in Brexit Border Plan
Barnier’s comments are misleading on Britain’s trade talks position, says PM’s spokesman
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).
Friday:
More stimulus probably needed, Bank of England’s Saunders says
UK construction sector growth slows in August
No-trade deal Brexit fears rise as talks stumble on state aid
UK’s Frost Says EU’s Stance on State Aid, Fish May Limit Progress
U.K. Digs In on Fishing With EU Brexit Trade Talks at an Impasse
