Sterling continued its decline overnight, as it was announced yesterday UK Prime Minister, Theresa May would fight the EU’s proposed deal. The proposed deal would see the UK following the EU laws during the transition period, despite getting no say in the creation of them. Government documents were also leaked showing the UK’s growth would be lower if the UK left the bloc rather than remaining in it. Steve Baker, the Brexit minister, was quick to respond to the reported leaking, saying the document was still in a ‘preliminary’ stage and would require further work.
The prelim CPI figure for the Eurozone largest economy, Germany, posted worse than expected this morning at -0.7%. The bearish reading saw the Euro decline against its major counterparties, as inflation slowdown will add further pressure to the European Central Bank’s plans of tapering the quantitative easing programme.
Bank of England Governor, Mark Carney is set to testify before the House of Lords Economic Affairs Committee this afternoon. Across the pond, the US will be releasing the Conference Board consumer confidence report. US President, Donald Trump will be delivering the ‘The State of the Union Address’ tonight in Washington.