After a worrying start to the year, the economic news this week has been a little better. This supports our view that while Brexit uncertainty is hampering growth, the economy is fundamentally sound. There has been limited reaction in financial markets to the political news of the creation of The Independent Group. But hopes that the PM will secure concessions on the Irish backstop appears to have bolstered the pound. And if Parliament steps in next Wednesday to take a no deal Brexit off the table, sterling could extend its gains further.
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