- Sterling gave back Thursday’s gains last week following comments from EU officials in which they expressed doubts over the ability of the UK to finish the trade negotiations before leaving the EU in March 2019.
- GBP/EUR started Friday on the front foot, trading as high as 1.1505 before coming off to close the day at 1.1356 following the aforementioned comments. This represented a loss on the day of 0.74%.
- GBP/USD followed a similar pattern by starting the day positively and trading a high of 1.3520 before coming off 0.67% to close down at 1.3381.
- In terms of economic data, UK manufacturing production m/m was first up and it came in as expected at 0.1%. The good trades balance from the UK came in slightly better than expected at -10.8B vs -11.5B.
- We then saw non-farm payrolls from the US beat expectations by coming in at 228K vs 198K. Average hourly earnings m/m was weaker than expected at 0.2% vs 0.3% and the unemployment rate came in as expected at 4.1%.
Over the Weekend
- Chinese inflation data was released during the early hours of Saturday morning with CPI y/y coming in at 1.7% vs 1.8% expected and PPI y/y coming in as expected at 5.8%.
- Michael Gove has said that the UK electorate can change the Brexit deal stating that if they ‘dislike the deal then they can change it’. However, he did fall short of saying how this could be done.
- GBP/EUR and GBP/EUR have started the week sluggishly coming off by 0.13% and 0.04%, respectively. EUR/USD is up by a fifth of a percent at the time of writing.
- This is no economic data to look forward to today.
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