10/08/2018 - UK Treasury Looking at Contingency Plans

GBP

Yesterday the UK Treasury said it would soon start putting contingency arrangements in place for financial services regulation if the country crashes out of the European Union without a deal. Currently Financial services accounts for roughly 6.5% of the UK’s economic output. The Treasury said that firms should continue to plan for a transition phase of around two years, which will come into force when Britain leaves the EU in March 2019 provided both sides come to an agreement on a deal. It is was also preparing just in case no deal is struck, the plan for a no-deal scenario would see Britain convert EU laws and regulations into British law.

EUR

German companies are increasingly suffering from U.S. President Donald Trump’s policy of sanctions - including those against Iran - and the tariffs he is pursuing in an escalating trade war with China, business associations said on Thursday. Washington said on Wednesday it would also impose fresh sanctions on Russia by the end of August after it determined that Moscow had used a nerve agent against a former Russian agent and his daughter in Britain, something the Kremlin denies.

Key Announcements

09:30 – GBP: UK Q2 GDP (Preliminary) expected to be higher at 0.4%
13:30- USD: USD Inflation (YoY) July expected to be unchanged at 2.3%