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The British pound was the biggest loser of the week, knocked down by increasing odds of a no-deal Brexit, and it’s likely that the rising cases of coronavirus infections in the U.K. brought pressure to Sterling as well.

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:

House prices in August 2020 were 5.2% higher than the same month a year earlier – Halifax HPI

Brexit chief Michel Barnier says he’s ‘worried’ about ‘difficult’ negotiations

Boris Johnson plans to tear up parts of his Brexit agreement with the EU and says leaving with no trade deal is a ‘good outcome’

Coronavirus spikes in Spain, France and U.K. raise specter of second wave

Tuesday:

BoE’s chief economist Andy Haldane warns against furlough extension

Boris Johnson warned rewriting withdrawal agreement risks ‘huge damage’ to UK as top government lawyer quits over PM’s plans

Brexit deal never made sense, Boris Johnson to tell EU

No-deal Brexit is the most likely outcome of trade talks, former EU chief says

Sterling’s weakness accelerated during the U.S. session, likely a reaction to the continued U.S. tech sector sell off, prompting traders to rotate from risk assets to safe havens/lower-yielding assets.

Wednesday:

U.K. Publishes Legislation That Breaches International Law

EU’s Michel calls on Britain to respect Brexit withdrawal treaty

EU says trust needed if talks with UK are to continue

Thursday:

UK house prices jump as buyers seek gardens after lockdown: RICS

Brexit: UK and EU set for emergency talks as tensions rise

UK’s post-Brexit plan puts trade deal with the EU — and the U.S. — at risk

Friday:

UK signs first major post-Brexit trade deal with Japan

UK economy extends recovery from COVID crash, growth seen fading

England brings in more local restrictions as COVID rate soars

The total trade balances increased by £35.8B to a surplus of £3.7B in the 12 months to July 2020.

In July 2020, the Index of Production (IoP) was 7.0% below February 2020, the previous month of “normal” trading conditions, prior to the coronavirus (COVID-19) pandemic.

UK Consumer inflation expectations for the coming year: +2.8%, down from 2.9% in May.