The Pound had a relatively positive day yesterday after figures revealed inflation hit the Bank of England’s 2% target for a second month running in June, suggesting its too early to be thinking about rate cuts due to the prospect of an economically damaging no-deal Brexit and U.S.-China trade tensions slowing the global economy. The data from the Office of National Statistics showed not only stable consumer price inflation but also weaker pipeline price pressures faced by British factories. On the other hand, households, whose spending drives Britain’s economy, are have been helped by wages rising at their fastest pace in a decade, with unemployment at a 44-year low.
House prices in London fell at the fastest pace in almost 10 years in May due to worries about Brexit and its impact on the city’s attractiveness as a global finance centre. Reflecting the weakness in the property market since the Brexit referendum more than three years ago, house price growth across the United Kingdom as a whole slowed to 1.2%.
Brexit Secretary Steve Barclay was asked by lawmakers if he thought the EU would be willing to offer concessions that would make the divorce deal acceptable to Parliament, which has rejected the current agreement three times. Barclay said the risk of a no-deal split with the European Union is “underpriced.”
09:30 – GBP: UK Retail Sales is expected to increase to -0.3%
All Day: G7 Meetings