GBPHeadline UK consumer price inflation edged up to 1.9%, beating expectations of no change. The core inflation rate, however, nudged down to 1.8% from 1.9% previously. Sterling and Interest Rate Futures were unchanged by the data. The latest CBI industrial survey reported the weakest growth rate since May 2018.

GBPUK labour market data surprised with a drop in unemployment to a 44-year low of 3.9%, while the employment increases had also out-performed expectations. Annual average earnings growth beat forecasts of a drop when it held at 3.4%, but the jobless claimant count increased.

GBPThe Pound slipped lower yesterday morning in what looked to be to start of a slow day. The Ulster Unionists made no indication they would accept the Withdrawal Agreement and therefore there was little chance that key Conservative MPs would revert to accepting the deal.

GBPThe Pound rose last Friday afternoon on speculation that the Ulster Unionists were moving closer to supporting the Withdrawal Deal. The government reiterated that the Article 50 extension would be lengthy if the deal was not passed, increasing pressure on Conservative MPs to vote for the deal.

GBPThe Bank of England’s Jonathan Haskel stated that he’d need evidence of higher inflation to convince him to vote to raise interest rates and expressed concerns over the risks to labour-market strength. Despite the dovish rhetoric, the Sterling impact was limited as the market was distracted by political developments.

GBPPhilip Hammond delivered the government’s Spring budget in the run-up to the No-Deal vote. UK GDP growth forecast for 2019 dropped to 1.2% from 1.6%, but lower borrowing forecasts and stronger wages growth negated any negative Sterling impact.

GBPUK Manufacturing output registered a 0.8% increase in January, bouncing back from a 0.7% decline in December. GDP recovered 0.5% in January for a year-on-year increase of 1.4%, up from 1.0% in December. But who listens to the data when we have Brexit?

GBPSterling remained extremely volatile yesterday morning as the Brexit rumour-mill churned and speculation that Theresa May could delay or downgrade today’s meaningful vote in the House of Commons and risk being deposed. The Pound regained ground in the afternoon amid speculation that “modified text” had been agreed between the EU...

GBPBrexit negotiations are dwindling as we approach the critical date of March 12th whilst, due to this, uncertainty continues to undermine the Pound. GBPUSD sank nearly 1% to record its largest single-day decline on Friday last week.

GBPYesterday could not please the Sterling market as various news outlets conveyed the EU-UK differences on the Irish backstop, which could be the reason for delivering a no-deal Brexit. There are now fewer chances of having an agreement before next week’s British parliament vote on the UK PM Theresa May’s...