Sterling has started the day weaker after Brussels has rejected UK Prime Minister Theresa May’s proposal on leaving the Customs Union after Brexit.
The setback follows Transport Minister Jo Johnson’ resignation last week amid concerns more pro-EU party members would also resign. And the Labour Party has said Parliament will block any plans to leave the bloc without a deal, while the issue of the Irish border is yet to be resolved. It is little wonder that the Pound is more than 0.6 per cent weaker against the US Dollar.
The week is likely to be dominated by Brexit headlines. However, focus tomorrow will turn to the health of the UK labour market. Economists forecast unemployment will have remained at 4 per cent and wages will have risen by 3 per cent.
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