GBPThe Bank of England MPC voted unanimously to hold interest rates at 0.75%, as expected, but the kicker was in the press conference. Forecasts of GDP growth in 2019 GDP were slashed to 1.2% from 1.7% previously, the lowest reading since 2009 and inflation is expected to drop below the...

GBPMoving oil prices had a modest effect on the Pound yesterday but, as always, political considerations dominated trading. Donald Tusk set the cat amongst the pigeons less than 24 hours before Theresa May is due to formally request a renegotiation of the Brexit deal, reinforcing fears the deadlock will continue.

GBPUK services PMI dropped from 51.2 to 50.1, below consensus forecasts and the lowest print for 2.5 years. The new orders dipped into contraction territory. Employment figures printed a modest decline for the first time in over six years with political uncertainty contributing to negative effects.

GBPUK construction PMI for January declined to 50.8 from 52.8, well below consensus forecasts and the lowest figure since last April. Commercial activity has been undermined by uncertainty but companies are still optimistic about the 2019 outlook.

GBPUK manufacturing PMIs declined to 52.8 in January, the second-lowest reading since July 2016 and new orders growth was weak. Further aggressive stockpiling maintained concerns that growth would not be sustained. The Pound had already slipped and the data failed to trigger any rebound with further concerns that uncertainty would...

GBPThe deadlock over Brexit negotiations with the EU is weighing heavily on the market and the Pound. The EU is maintaining a tough stance saying it will not renegotiate the terms of the Withdrawal Agreement and the backstop issue is arguably the main concern.

GBPPM Theresa May and her parliamentary colleagues are optimistic she can get EU leaders to bend on some terms and reach some sort of a deal before March 29th.

The impact on the Pound after yesterday evening's parliamentary votes can best be summarised by the fact Goldman Sachs analysts have kept the probability of a delayed Brexit unchanged at 50% and cut probability of "no Brexit" to 35% from 40% i.e.

GBPThe Brexit Select Committee reiterated that a ‘managed no-deal Brexit’ wouldn’t be a responsible policy for any government, and the Pound gained initially before suffering a price correction later in the day. The EU reiterated that there was no room to change the Withdrawal Agreement and the chances of the...

GBPUK high street lending data was close to expectations while retailers remained cautious with a CBI survey reading of 0 from -13 the previous month.