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It has been a turbulent week so far for sterling, but recovery is on the horizon. Although still at a low compared to where it was this time last week, sterling continues to make some improvement against the euro this morning.
In politics, the UK is preparing to name its next prime minister – the announcement will be made on Monday.
Yesterday the euro continued to strengthen sharply against the pound, however this morning the euro has dipped against sterling in anticipation of today’s Eurozone inflation rates. Markets are expecting inflation to hit 9.1%
In the US, The number of US Job openings exceeded market expectations in yesterday’s data release, rising by 199,000 to 11.239M. Openings were forecasted at 10.5M.
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GBP: Sterling on the road to recovery
At the start of the week sterling fell to its lowest rate since early summer against the euro. Although sterling is still at a low compared to where it was this time last week, sterling continues to make some recovery against the euro this morning.
Against the dollar, sterling continues to make a little more progress.
It remains a quiet week for UK data however tomorrow, markets can expect data on S&P Global/CIPS Manufacturing PMI Final.
In politics, the UK is preparing to name its next prime minister – the announcement will be made on Monday.
Tori Leadership candidate Rishi Sunak “struggled to see” how Liz Truss’ promise of tax cuts is going to “add up” and warned that it would be “complacent and irresponsible” to ignore the risk of markets losing confidence in Britain’s economy.
GBP/USD over the past year
EUR: Euro dips in anticipation of higher inflation rates
Yesterday the euro continued to strengthen sharply against the pound, however this morning the euro has dipped against sterling in anticipation of today’s eurozone inflation rates. Markets are expecting inflation to hit 9.1%
Against the dollar, the euro is still choppy this morning but has weakened by around 0.02%.
France’s YoY inflation rate was released this morning. The previous rate hit 6.1%, the highest in nearly 40 years however, this morning’s figures gently decreased to 5.8%, beating market expectations of 6%.
USD: dollar continues to fall against sterling
Yesterday the dollar weakened slightly against sterling and continues to fall this morning. Against the euro, the picture is somewhat different for the dollar as it gained fresh strength this morning.
The number of US Job openings exceeded market expectations in yesterday’s data release, rising by 199,000 to 11.239M. Openings were forecasted at 10.5M.
For the rest of the week, market watchers can expect lots of unemployment data from the US. ISM manufacturing PMI and non-farm payrolls will also be released.
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