GBP Weekly Forecast – Deal or No Brexit Deal?

The clock is ticking for EU and U.K. negotiators as their October 15 deadline looms.

Will we see some form of a deal this week?

Check out the top headlines that can affect the pound’s intraweek trends:

Brexit negotiations

European Union (EU) leaders will meet on October 15 to assess any progress on a Brexit deal
U.K. PM Boris Johnson has hinted that he’s prepared to walk away from the negotiations if there’s no deal by October 15
Word around is that both camps are inching towards a deal, but that European Union chief Brexit negotiator Michel Barnier needs a bit more concessions from the U.K. side before entering the more intensive “tunnel talks”
Failure to make deals would mean a messy Brexit where businesses and citizens are unsure about their rights and responsibilities after the year ends

The unemployment rate jumped from 3.9% to 4.1%, the highest since October 2018
Unemployment claimants rose by 73,700 in August, which is still high but better than the 99,500 claimants that markets had expected
Average earnings dipped at a slower rate (from -1.2% to -1.0%) for the month
While the numbers were weak, they were still better than analysts had expected so traders still bought GBP until the start of the U.S. session
Analysts expect claimants to dip to 72,000 in September
The unemployment rate could inch higher to 4.3%
A net of 60,000 workers are expected to have lost jobs for the month