As the Withdrawal Bill sailed through UK Parliament last week, all but solidifying the UK’s intention to leave the European Union on the 31st January – barring a meltdown in the Lords – markets can finally start to focus on other key contributors that have an impact on sterling’s health.
This morning at 09:30 GMT, the UK will release its manufacturing, industrial and GDP figures, which will give a clear picture of the health of those sectors and, in the case of GDP, the economy as a whole. Why today matters more than before is twofold: this release is the first of 2020 and it is the first time in years the market can examine these figures without initial Brexit bias.
At this stage, with the UK still technically not ‘out’ of the EU, trade talks are yet to commence as stated in EU law. Bearing this in mind, sterling trading has been fairly thin in its first week back; today could see a jolt in either direction based on the data not only presented today but also throughout the rest of the week, with critical retail figures out on Wednesday and Friday at the same time.
The initial release today is likely to set the tone for what will be a tremendously busy and important week for the pound. If you have sterling transfers that you are holding out on, without a full understanding of the above, contact your account manager to discuss your strategy.
Have a great day.
Author: Joshua Haden-Jones, Private Dealing Relationship Manager
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