Sterling moved to it’s lowest level in two weeks against the USD on Friday as political uncertainty remained high ahead of next month’s general election.
Speaking at the launch of the Scottish National Party election campaign, leader of the Scottish National Party, Nicola Sturgeon put sterling on the back foot as she suggested that she would form an alliance with Labour to block a conservative government on the 12th December. Adding that the SNP will push for another Scottish referendum if they are able to secure a majority in Scotland.
Sterling was also under pressure on Friday as a result of a report from ratings agency Moody who warned the U.K. could see their credit rating downgraded. The report cited concerns that both parties at next month’s election will fail to tackle higher borrowing levels and that Brexit has caused a “paralysis on policy making”. Moody added that they were also the UK’s Aa2 rating from “stable” to “negative”.
09:30 – GBP: Gross Domestic Product (YoY) (3Q) – expected to fall from 1.3% to 1.1%.