Analysts at Nomura explained that it is a very important week for the UK market coming up.
"The Brexit negotiations will reach a peak at the European Council meeting on 14-15 December."
"The MPC meets on the 14th. In addition, labour market, retail sales and, most importantly, inflation data are all due."
"On top of all of this we have Fed and ECB meetings as well."
"Our base case remains that the UK and EU will make ‘sufficient progress’ to move onto Phase II of the negotiations in the New Year, but we will know more after the weekend."
"And while expectations for the MPC are very low, we do see a risk/reward skew to it being more hawkish than expected."