UK economy grows faster than expected
Firstly, some good news with the UK beating growth forecasts with the help of manufacturers stockpiling ahead of Brexit. The economy grew by 0.2%, faster than the 0% forecast. The IMF this week released its global growth forecast for the remainder of this year and 2020, calling the current climate a "delicate moment". Whilst they do not predict a recession (yet), we are in a global slowdown, which is not to be sniffed at.
Back to Brexit news now and there will be no Brexit this Friday. Instead, we await to hear the outcome of new arrangements made from the EU summit later today, that will tell us how long an extension (and with what terms) we will be given. Once the announcement has been made, Sterling isn't expected to trade much outside of the current levels, unless a short extension is given. The news should come out early Thursday morning.
Cross-party talks are set to continue tomorrow after no agreement was made earlier in the week. Importantly, talks have not collapsed which suggests the prospect of a deal is still alive. The ECB conference today will no doubt provide volatility as the single currency remains under economic pressure. The Pound awaits its near future path