Government reaches deal with DUP after soft consumer data

The Conservative government has reached a deal with the DUP party in order to secure a majority in the Houses of Parliament, offering a degree of certainty going forward into early Brexit negotiations. The 'confidence and supply' deal allows May's government to pass legislation contained in the Queen's speech and budget, though likely at the cost of significant incentives for the DUP, including not least, giving priority to the issue of a potential post-Brexit hard border in Ireland. Details are expected to follow soon. UK equities have seen a rally, despite a strengthening pound acting as a headwind for FTSE companies that earn overseas. Hours previously, data released revealed that UK consumer spending has slowed year-on-year from 6.4% growth in April, to 5.1% in May, showing a continuing downtrend in the quality of UK economic data. This briefly dented Sterling, though news of the Government deal has aided a rebound and allowed it to hold above major currencies on the day.