We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.
Hide

August

Surge in confidence for Sterling

Published: Thursday 30 August 2018

  • France all for forging EU-UK deal
  • All eyes on EU for data today
​​By Michael Hart

Sterling surged overnight, boosted by comments from the EU indicating that they’re committed to a Brexit deal with the UK. The EU’s chief negotiator, Michel Barnier, said that the EU is prepared to offer a partnership with the UK unlike that with any other country. That’s seen as a gesture that the EU is committed to a deal. Barnier said in Berlin that “...we are prepared to offer Britain a partnership such as there never has been with any other third country.” In return, they must respect what we are,” he said. “Single market means single market… There is no single market a la carte.”

Brexit Minister, Dominic Raab, also told the UK parliament that a Brexit deal with the EU was “within our sights” and the negotiation would intensify as the divorce date approaches. Raab also added that the UK’s Brexit plan received positive reactions from the EU. He said the plan “had a reasonably positive landing” and “we’re getting a lot of constructive engagement.” He also said there was “…a lot of talk about the practical considerations rather than ‘in principle’ dismissal, and I think that’s valuable from our point of view.”

 France all for forging EU-UK deal

France is also prepared to help forge an EU deal with the UK after Brexit. Emmanuel Macron aims to use an EU summit next month to put pressure on the bloc's leaders to push for a partnership with Britain. Mr Macron fears that a No Deal Brexit would be damaging for Europe and is keen to push for a new alliance between the EU and Britain. So far, so good - Sterling will continue to remain supported in light of the change in sentiment from the EU.

All eyes on EU for data today

Looking ahead, Germany will release its unemployment and Consumer Price Inflation (CPI) figures. The Eurozone will release confidence indicators. The UK will release mortgage approvals and Bank of England M4 (broad) money supply.
Jokes

How do you stop a bull from charging?
Cancel its credit card.

What do you get when you cross a snowman with a vampire?
Frostbite.

What do you call a pile of cats?
A meow-ntain.

Today's Major Economic Releases

Market BST Data/Event Previous Expected
GBP 09:30 UK: M4 Money Supply -0.3% 0.2%
GBP 09:30 UK: Mortgage Approvals 66k 65k
GBP 09:30 UK: Net Lending to Individuals 5.4b 5.5b
CAD 13:30 Canada: Gross Domestic Product 0.5% 0.1%
USD 13:30 US: Personal Spending 0.4% 0.4%
USD 13:30 US: Core Consumption Expenditures  0.1% 0.2%
USD 13:30 US: Unemployment Claims 210k 214k

For more information, infographics and the latest currency insights, visit www.halofinancial.com/news