More headline risk for the GBP ahead
If you took Brexit out of the UK picture then it would be doing pretty well. The labor market has been improving, with wages rising, as businesses are finding it hard to keep certain skills and a decent summer has kept growth ticking away for the UK. If there was no Brexit shadow a rate hike could well be on the cards within the next 6 months or so. However, for now, there will be no hike at the BOE's meeting this week on Thursday 1 November and the vote should be unanimous in keeping the rate unchanged. This week the UK's chancellor, Philip Hammond, is making the Autumn budget, but he has said that if there was a no-deal brexit, then the budget would have to be revised. See the BBC report here.It is worth having a quick look at this infographic below here from ING, which gives the timeline for all the key Brexit negotiations.
source:ING
It is worth noting that the next big focus is likely to be the December EU summit where a Brexit deal is hoped to be agreed. An agreement in November would be a positive GBP surprise. Also, check out Carney's speech on Thursday at 1330 GMT to see if Carney references the short term risks which have surely grown with all the difficulties of a no-deal Brexit and Theresa May's difficulties in uniting her party.
One thing is for sure: there is more Brexit drama to continue this week.
Keep trading the headlines for those short term spikes using a squawk. If you want a cheaper/free option. Check out this link. :-)