After strengthening against the euro yesterday, the pound is weaker this morning and is nearing a yearly low against the dollar.
Inflation continues to be the main cause of sterling’s woes. UK businesses have called for the government to do more to help them, warning that they are on “limited time”.
It’s a similar story in the eurozone, with economists suggesting the economy could enter a recession before the end of the year. Eurozone inflation data, due today, will therefore be eyed closely.
The dollar remains stronger, benefitting from its safe-haven status. Nonetheless, US stocks have seen their worst drop in the first half of a year since 1970 as concerns over inflation and future interest rate hikes cause investors to worry.
Markets now await PMI figures for the US – an important measure of how the economy is faring and the current market conditions.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
