The Pound has rallied to 1.1395 its highest value in three months against the Euro. While its stellar performance is boosted by optimism that a Brexit deal will be reached, Sterling has never been so weak for such an extended period.
That said, uncertainty over a Brexit outcome is stunting the UK’s growth, which is evident in the housing market. For the second month in a row, home prices dipped by 1.4 per cent month on month in September as buyers take a “wait-and-see” approach, according to Halifax.
Meanwhile, growth of the US jobs market slowed in September, but the unemployment rate dropped to 3.7 per cent – a 49 year low, according to data released by the US Department of Labor. Despite the miss, the US economy continues to outperform its global peers. For some this is a positive outlook, but for the Federal Reserve (Fed) this is a sign that the economy may be overheating.
Finally, US President Donald Trump’s attempts to rebalance the US trade deficit might have hit a wall. The shortfall reached a six-month high of nearly $75.5 million in August as exports dropped further amid declining soybean shipments and imports hitting a record high. This is a clear sign that trade may impede economic growth in the third quarter.
Data provided by