STERLING CONTINUES TO STRUGGLE

This week's relatively benign economic news has failed to lift the pound above $1.22. Growth is surprisingly resilient at 0.5%, more or less what the Treasury forecast before the vote and Nissan's decision to build new models and even expand production at Sunderland is good news.  Although it does beg the question for Brexiteers why Nissan took some reassuring (and perhaps even money) to remain in a UK which is apparently going to prosper like never before.

It is as if they were just about to leave Heaven but were persuaded by St Peter to stick it out!

But all this is not good for sterling. If good news does not bring about a rally what will the first bit of bad news do?  Inflation is starting to bite (HERE) and consumer confidence is beginning to fall (HERE) so we may not have long to wait. The next set of trade figures will be interesting.