The dollar has almost reached parity with the euro as fears over the supply of gas to western Europe this winter, along with the aggressive stance of the US Federal Reserve on interest rates, sent the dollar to yet more strength.
The pound has also suffered against the dollar while taking advantage of the euro’s weakness to post a 9-week high.
Retail sales in the UK were revealed to have suffered in June, despite the Platinum Jubilee boosting food sales and the warm weather encouraging a change of wardrobe.
The governor of the Bank of England (BoE) Andrew Bailey struck an upbeat tone before the Treasury select committee yesterday. He said that while the economy faces material challenges, the system was resilient.
In politics, Conservative Party leadership challengers set out their stalls, with decreasing taxes featuring heavily. A new prime minister should be in place by 5 September.
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