Sterling has gained well over a cent against the euro on positive economic news this morning, with a smaller but determined rise against every major currency.
The prompt has been better-than-expected jobs and earnings data this morning, just when the Bank of England has said it is analysing the data closely as it considers an interest rate rise in mid-December. A key barrier to a December rate rise appears to have been overcome.
In a busy week for economic data and comment from central bankers, there will also be concern about the rapid rise in Covid-19 cases across Europe, and the risk of power outages this winter, after the president of commodity trader Trafigura warned of insufficient natural gas supplies.
There was also interest in the virtual meeting between President Biden and President Xi of China, who mutually agreed not to allow economic competition to veer into conflict.
Elsewhere in the business news, Shell has opted to base its operations in the UK rather than the Netherlands, and the UK has shelved a key part of the HS2 rail line – the eastern leg that was to have reached Leeds.
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