GBPThe Pound failed to attract more buying yesterday morning after Wednesday’s sharp gains created some pressure for a price correction. In parliament, there were renewed doubts that  Labour would back amendments specifically ruling out calls for a second referendum.

GBPThe Pound held steady yesterday with investors swift to buy on dips in price. CBI industrial orders declined to -1 in January, down from 8 previously and confidence weakened at the fastest pace in 30 months.

GBPUK unemployment fell to a 44-year low of 4.0% in the three months to December, beating the forecast of no change. Employment over the same period showed a robust 141,000 jobs added but there was also over 20,000 added to the jobless claimant count.

GBPSterling was hampered early on by political speculation ahead of the “Plan B” revelation but managed to claw back some ground on further speculation over efforts to resolve the Northern Ireland issue. Tough EU rhetoric limited potential gains and Sterling dipped to near 1.2830 against the Dollar and 1.1300 against...

GBP

GBPThe latest Bank of England (BoE) credit survey added to unease in the housing sector when it reported that lenders expected a slowdown in demand for housing finance over the next quarter; caused by Brexit uncertainty.

GBPHeadline UK CPI inflation declined to 2.1% in December, down from November’s 2.3%, and the core rate modestly beat market expectations with 1.9%, up from 1.8%. Bank of England (BoE) Governor Mark Carney stated that the Pound’s current support appeared to indicate that markets were pricing in a lesser risk...

GBPSterling faded throughout the day with political tensions rising and the removal of a key Withdrawal Agreement amendment ramped up the expectation of a substantial defeat. The Pound fell steadily towards 1.2700 against the Dollar and the 1.1180 area against the Euro amid frantic positioning in the market.

GBPTheresa May’s speech revealed little new information and an EU letter offering “Northern Irish backstop reassurances” had little impact in swaying political opinion. The Pound was kept afloat on expectations that a ‘no-deal’ Brexit would be blocked by parliament.

GBPFriday saw further mediocre economic data with November manufacturing production suffering a 1.1% year-on-year decline and the goods trade deficit was wider than expected with at £12.0bn. Construction data beat consensus forecasts and the monthly GDP estimate of 0.2% growth in November beat forecasts of 0.1% growth.