The pound weakened against both the euro and the dollar yesterday and is still weak this morning due to the UK’s energy crisis and fuel shortages. The crisis has stoked concerns over rising inflation and economic stagnation.
Yesterday, Prime Minister Boris Johnson said, “we’re hearing from industry that supplies are coming back onto the forecourts in the normal way.” Any further news on this could continue to impact sterling.
The markets will be listening closely to Federal Reserve Chair Jerome Powell’s testimony in front of Congress today, in which he is expected to warn of prolonged high inflation. Rising treasury yields caused the dollar to strengthen yesterday and it is still strong this morning.
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