After challenging August’s 18-month highs yesterday morning sterling fell back by around 0.4% against the euro and other major currencies yesterday, although – so far – it has stabilised this morning.
Data released this morning shows the highest number of UK job vacancies for 20 years and unemployment falling to 4.5%, compared to 5% before the pandemic (and the end of free movement from the EU).
This week senior economists and bankers who made it onto various central banks’ monetary policy committees will be outlining their thinking on the great recovery-versus-inflation debate. This has been proven to move exchange rates over the past week and could do so again. This morning Bank of America’s analysts have suggested that the Bank of England will raise interest rates to 0.15% in December.
In the business news, the UK government has offered financial support for energy-dependent industries as the gas price continues to rise.
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