The government confirmation this week that the prime minister will bring her deal back for a 4th vote, in the first week of June, has led to strong sterling selling across the board.
The current likelihood is that the deal would fail again, with May promising to announce a timetable for her departure following the vote, regardless of the outcome.
Next week’s EU elections will only add to the current uncertainty.On the economic front, average earnings this week dropped slightly to 3.2%, still comfortably above inflation, whilst the unemployment rate dropped to 3.8%, its lowest level since the mid-1970’s.
Elsewhere, the ongoing US-China trade dispute continues to weigh on markets, with the Chinese retaliating this week.
On the exchanges, sterling broke lower as the political uncertainty continues.
GBP/USD has broken below 1.2800 this morning, its lowest level since February, whilst GBP/EUR has broken below 1.1450.
A lack of progress on Brexit cross-party talks, will likely keep sterling sentiment weak leading into the June vote.
|22/5/19||UK CPI YoY||1.9%||2.2%|
|22/5/19||UK RPI YoY||2.4%||2.8%|
|22/5/19||UK Public Sector Net Borrowing||0.8b||5.2b|
|22/5/19||US Fed Minutes||–||–|
|24/5/19||UK Retail Sales YoY||6.7%||4.7%|
|Indices||Previous Close||YTD % Change|
|DFM GENERAL INDEX||2575||1.78%|
UK Benchmark Rates
|3 month||0.80363%||2 year||0.99%|
|6 month||0.90263%||3 year||1.03%|
|12 month||1.04675%||5 year||1.11%|
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