If the Labour party were to get back into power, leader Keir Starmer believes that re-joining the EU would have a negative impact on economic growth as it would bring further uncertainty to businesses as the UK would be better off with closer trade links that would come from a ‘better Brexit’ that they would negotiate.
Some analysts believe that in regards to Brexit and how it has effected the UK economy, ‘it is all still to play for’. Brexit has ultimately had a negative impact so far, but when you think that we have also been through a Pandemic, and currently have a war in the Ukraine, then surely without these two major influences the Economy would be in a far better place. They also believe that Eurozone committee members reiterate a negative tone on how Brexit has effected the UK, in the hope it prevents any other Eurozone members to follow a similar route.
Britain’s new car market grew for fourth month running in November, with registrations of new vehicles rising by almost a quarter. Registrations jumped by 23.5% in November year-on-year to 142,889 units.
US Non farm payrolls on Friday afternoon came in at 263k, way above the 200k consensus figure, but down from 284k MoM as expected.
GBPUSD fell on Monday fuelled by a couple of reasons, firstly investors eyed that US interest rates may peak at 5.75% which would likely be higher than that of the UK. Also positive consumer spending in the UK which in normal circumstances can be positive for currency, had a negative effect as it is a catalyst to push inflation higher.
Chances of the Eurozone hiking interest rates sharply at their next meeting were hampered by the 1.8% decline which was the sharpest drop since December 2021, the Eurozone is also battling record high inflation so the decision that the ECB make on their hikes could have an impact on the battle.
GBPUSD currently resides at 1.2185
GBPEUR currently resides at 1.16
EURUSD currently resides at 1.05