Sterling steadied on Friday but was on track to record its worst week against the euro in nine months, with the single currency rallying across the board on bets that the European Central Bank was on track to tighten monetary policy next year.
The stagflation warning signs are flashing for the UK economy after this week's data, while any 'soft' Brexit euphoria is slowly beginning to fade as the reality of difficult negotiations begins to sink in
Investors are watching Brexit negotiations between Britain and the European Union closely, with any signs that Britain will lose its preferential access to the single market, or that it will not get a deal with the EU, likely to knock the currency.
While it is certainly possible that sterling could remain subdued this summer, the risk is political crosscurrents could leave the currency exposed to sharp moves to the downside.
Given where GBP is currently trading it may therefore be worth keeping a close eye on political developments this weekend
The stagflation warning signs are flashing for the UK economy after this week's data, while any 'soft' Brexit euphoria is slowly beginning to fade as the reality of difficult negotiations begins to sink in
Investors are watching Brexit negotiations between Britain and the European Union closely, with any signs that Britain will lose its preferential access to the single market, or that it will not get a deal with the EU, likely to knock the currency.
While it is certainly possible that sterling could remain subdued this summer, the risk is political crosscurrents could leave the currency exposed to sharp moves to the downside.
Given where GBP is currently trading it may therefore be worth keeping a close eye on political developments this weekend
