The British pound was seen losing 0.47% on the day on Brexit related developments. First, the UK’s Chief Brexit negotiator, David Davis resigned which was later followed by the UK’s foreign minister, Boris Johnson resigning as well.
The exit of the two key figures was however seen by many as the UK’s ability to opt for a soft Brexit with the EU.
On the economic front, data was limited on the day. German trade balance was seen at 20.3 billion euro, matching estimates and posting a slight increase from 19 billion euro registered the month before.
Looking ahead, the economic data for the day will see the start of the first release of the UK’s monthly GDP numbers. Forecasts show that the economy expanded at a pace of 0.7% following a 0.5% decline the month before.
Simultaneously, the manufacturing, industrial and construction output reports will be coming out. All three sectors are expected to show a modest rebound in activity.
Data from the Eurozone is relatively quiet for the most part.
The NY trading session is light with the release of Canada’s housing starts and building permits report.
