Another tumultuous week for British politics, with parliament suspended and the commons speaker announcing he will stand down.
The Prime Minister continues to insist that we will leave the EU at the end of October, despite parliament backing a new law to stop us leaving without a deal.
Economically, UK data has actually been remarkably robust, with average earnings hitting an 11-year high of 4% – comfortably above inflation, and unemployment at a record low of 3.8%.
Monthly growth figures were also much better than expected at 0.3%.
In Europe, the ECB eased monetary policy yesterday as expected, by cutting rates further and increasing their QE program, as they aim to stimulate their economy. The ECB are looking to resume asset purchases at €20bn a month starting in November.
On the exchanges, sterling remains volatile as the extreme political uncertainty continues.
GBP/USD recovered strongly from below 1.2000, with the pivotal 1.2500 level now coming into focus.
GBP/EUR is well supported but struggling to make a closing break through the 1.1250 level.
|18/9/19||UK CPI YoY||2.1%||1.9%|
|18/9/19||UK RPI YoY||2.8%||2.5%|
|18/9/19||EU CPI YoY||1.0%||1.0%|
|18/9/19||US FOMC Rate Decision (Upper Bound)||2.25%||2.00%|
|19/9/19||UK Retail Sales YoY||3.3%||2.6%|
|19/9/19||UK Bank of England Bank Rate||0.75%||0.75%|
|Indices||Previous Close||YTD % Change|
|DFM GENERAL INDEX||2885||+14.16%|
UK Benchmark Rates
|3 month||0.77988%||2 year||0.84%|
|6 month||0.83013%||3 year||0.83%|
|12 month||0.93713%||5 year||0.82%|
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