Sterling had a sustained day above 1.12 against the Euro today presenting some good news for Euro buyers and potentially a glimmer of hope. The good news came from Philip Hammond announcing he hopes to achieve reciprocal rights for EU citizens in the UK and UK citizens in the EU. The main focus of the discussions has been the fear that not accepting free movement would remove Britain’s access to the single market. The Chancellors comments present hope that the UK could consider some form of immigration deal that would maintain the access.

This news could start to settle markets, however there is still a hugely significant amount of uncertainty. Much of the UK’s troubles have been surrounding the threat of major businesses being forced to leave the UK causing major job losses and lack of investment. If the current business deal with Europe is maintained, then there is certainly the possibility that Sterling could start to strengthen.

The UK’s unemployment rate stayed the same however average earnings were up from the previous month. This would have added to the confidence that the UK was not suffering as badly as many expected. There has been an increase in supermarket prices over the last few weeks with discussions making headlines between Unilever and Tesco’s, this has arguably set a precedent for things to come.