GBPSterling flew out of the traps on the release of the UK retail sales data. Sales volumes increased 0.3% in August, significantly above the forecasted decline of 0.1%. Annual growth printed at 3.3%, with July’s figure revised up to 3.8%.

GBPBank of England Chief Economist Andy Haldane commented that there has a been a recent surge in business concerns about Brexit and uncertainty; and Sterling dipped briefly. UK inflation data reversed the move within the hour. Headline consumer inflation increased to a six-month high of 2.7%, beating forecasts of 2.5%.

GBPUK Brexit Secretary Dominic Raab stated that the UK could see no alternative to the proposed Irish border, but that the government was open to fresh suggestions. UK 10-year government bond yields increased to 3-month highs, supporting the Pound, although higher US and German bond yields offset the move.

GBPChristine Lagarde, Managing Director of the IMF, warned of important negative consequences of a ‘no-deal’ Brexit. Elsewhere, optimism rose on reports that the EU was prepared to be more flexible on the Irish border issue. Germany and Austria were reported as being “determined to avoid a ‘no-deal’ Brexit”, raising expectations...

GBPAmid renewed Brexit optimism, Sterling managed a peak of 1.3143 against the Dollar, but fell away after reports indicating indicating that Labour is set to vote against the “Chequers' Brexit deal”. Theresa May will need considerable Conservative support to fend off opposition to her vision and also to remain in...

GBPUK Monetary Policy was left unchanged after a unanimous vote at yesterday’s Bank of England (BoE) meeting. The central bank believes that its economic forecasts are “broadly on track”, and raised growth forecasts. Despite an increase in concerns about protectionism, EM risks and Brexit uncertainty since the August meeting, Brexit...

GBPSterling had a sluggish start to yesterday after reports of a potential leadership challenge to Theresa May, dragging the Pound to lows of 1.2980 against the Dollar. The move was temporary and softer US PPI figures helped weaken Dollar sentiment.

GBPAs the effect of Michel Barnier’s optimism of a November deal faded, Sterling had a choppy trading day against the Dollar. The UK's unemployment rate held steady at 4.0%, a 40-year low. Average earnings data beat consensus forecasts, with earnings including bonus growing 2.6%, and excluding bonus 2.9% in the...

GBPThe first UK economic data in a week or so produced a mixed set of results. UK industrial production data for July fell short of expectations with a 0.1% increase, while manufacturing output also disappointed with a drop of 0.2%.

GBPChief Brexit Negotiator Michel Barnier provided Friday’s main Sterling news with reports that he will consider other Northern Ireland (NI) backstops if needed, and the EU is ready to simplify border checks if needed. The caveat was that there would be no “deal” without a working NI backstop but the...