The Pound jumped by more than 1 per cent yesterday, 10 September after EU chief negotiator Michel Barnier said a potential Brexit deal could be agreed by early November. Sterling soared to 1.3063 against the greenback – its highest level in over a month.
Meanwhile, the British economy expanded at its fastest pace in nearly a year as the services sector remained robust in the three months to July. This expansion was attributed to the hot weather and England’s success in the World Cup. It also beat economists’ estimates of 0.6 per cent growth as construction output and the retail sector also played their part. In addition, UK trade figures showed the deficit in goods narrowed to a five-month low of £9.97 billion in July.
In Europe, Sweden’s election left many with more questions than answers. But what was apparent was the rise in support for the anti-immigration Sweden Democrats party, that is poised to win about 62 seats in the 349-member parliament.
Finally, in a week awash with economic data from the UK, my focus today will shift to the health of the labour market. Economists forecast average earnings will have risen by 2.8 per cent in July. If wages rose at a faster pace, Sterling’s stellar performance this week will continue.