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Sterling slips and five days to go before leaving the EU

Published: Monday 08 April 2019

  • Sterling slips slightly in run up to "official" EU leaving date
  • US data shows in manufacturing sector but employment booming
  • Lots of EU data to absorb this week

US data shows in manufacturing sector but employment booming

I hope yours was a good weekend. Last week ended with a neat demonstration of the dilemma facing the US Federal Reserve. The US unemployment rate stayed at the remarkable low of 3.8% and more jobs were added than expected; some 196,000 but jobs growth in the manufacturing sector was limited and that chimes with recent poor manufacturing number for the US. We are likely to see a poor number in this afternoon’s factory orders data as a case in point. Hence, the US Dollar didn’t strengthen much as traders await comment from the Federal Reserve on just how long they will keep the base rate on hold.
Sterling slides in run up to "official" EU leaving date

Sterling has slipped a little. That is no surprise at all when you consider the turmoil going on in British politics. This week brings the UK economic growth statistics and a slower pace of growth is expected. Again, that is kind of inevitable with so much negative sentiment rolling around the economy. I can’t get through this without mentioning the B word. Officially, Britain is supposed to leave the EU on Friday with the Noel Edmonds option of Deal or No Deal.

MPs seem terrified by their own doom-mongering; desperate to avoid Britain leaving the EU reliant on World Trade Organization (WTO) tariffs and rules. As so much of world trade is carried out on these terms, it is still hard to see quite where the terror lies but, having paid civil servants to create horror story forecasts, MPs are quite invested in their output. So, while the Pound is off its highs, it hasn’t slumped, as might have been the expectations.

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Lots of EU data to digest this week

There is a fair amount of EU data to absorb this week. The most relevant of which is Inflation. The European Central Bank (ECB) is struggling to see a way to keep stimulus in the Eurozone; what with Germany’s economy slowing sharply and little growth elsewhere. Unemployment remains high across the currency sharing bloc and some of the stats are still scary 12 years after the financial crash that decimated jobs in the region.  The Euro is weak against most other currencies, but has the capacity to strengthen if this week’s inflation data shows any kind of life.
Grammar Police!

And a teacher at a London secondary school has been suspended because it was discovered that he cannot read or write. The details came out after he tried to sue the school for unfair dismissal. I have got to say it may explain a lot about some of the grammar seen online and emails received in business.


A farm hand is taking his driving test.
The instructor asks him, “Right, can you make a U turn?”
The farm hand looks at him and says, “Probably not, but I may be able to get her to slow down a bit.”

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