The pound has begun to recover against the euro and the dollar this morning. This comes after poor economic data released on Tuesday fuelled worries about the state of the UK economy, causing sterling to weaken.
Yesterday, Bank of England official, Huw Pill, said that he thinks more interest rate hikes are needed. However, he added that the central bank is conscious that “too much” action would leave the economy stuck in a recession.
The details of Sue Gray’s ‘partygate’ report were released yesterday, revealing the nature of the parties that took place at Downing Street during the pandemic. Despite this, Conservative MPs have said that they don’t want the Prime Minister to resign.
Chancellor Rishi Sunak is expected to speak later, announcing a new plan to support households with rising energy costs this winter.
Across the pond, Federal Reserve meeting minutes were released yesterday, confirming that the central bank could take a more cautious approach to interest rates later this year.
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