The pound is still weaker against the euro this morning after falling yesterday. This was due to UK inflation, which rose to 9.1% in May – a fresh 40 year high.
This morning, data revealed that the government borrowed more than expected in May. Chancellor of the Exchequer, Rishi Sunak, explained that “rising inflation and increasing debt interest costs pose a challenge for the public finances, as they do for family budgets.”
Today, PMI data, which provides a snapshot of how economies are performing, will be released across the board. French and German PMI has already been released this morning and came in worse than expected, causing to euro to weaken against the dollar.
Federal Reserve Chair, Jerome Powell, will continue his testimony at the Senate today. After stating yesterday that a recession is “certainly a possibility”, the markets will be listening closely to his speech.
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