The party conference season has kicked off with the Liberal Democrats and Vince Cable getting things rolling. This is the first conference of many with both the Tory Party and Labour Party expected to create headlines and fireworks. Normally conference season passes without too much attention, however with the Conservative government having a minority within Parliament and Brexit plans being examined constantly this season could cause some volatility for the pound. Not wishing to miss out on all this upcoming drama, London Mayor Sadiq Khan called for a second referendum over the weekend on the outcome of the Brexit deal. Expect more of this over the coming weeks as well Boris Johnson’s possible leadership bid.
In the meantime UK inflation is released this week which could cement the Bank of England’s position on interest rate hikes. For a next hike in 2019 inflation will have to consolidate around the 2% mark, the Bank of England’s target, if wage growth is still subdued.