The UK woke up to the news this morning at market open that the 15.5% rebound for the quarter means Britain is no longer in recession. That being said, it is of course the rebound reaction to the first wave lockdown that caused one of the sharpest drops in UK GDP ever, but at least the economic rot didn’t set in long term. The hope is that this time around, in lockdown part two, is that the assistance from the Bank of England, plus less stringent measures and an incoming vaccine means the economic impact shouldn’t be as severe – especially if Christmas retail sales can be protected.
Aside from the data, the song remains the same for the pound, with the next logical Brexit deadline appearing to be the European Council summit on the 19th of November. Negotiators have been in deep discussion over three key areas of disagreement outlined by Michel Barnier last week, including sovereignty, the level playing field on regulation and fishing rights. So far, it seems that no news is good news, but as always, it takes only one headline or leak to upset that notion.
Have a great day.
Author: Josh Haden-Jones, Senior Relationship Manager
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