The pound has started the week slightly weaker than where it was on Friday afternoon as political uncertainty and recession fears weigh on markets.
UK business activity grew at the slowest rate since early 2021 and experts warn “worse is to come”.
Today, Liz Truss and Rishi Sunak, the two Tory finalists, will compete in their first head-to-head debate. Early signs from a YouGov poll and other Conservative surveys suggest Liz Truss is the more popular candidate.
The eurozone appears to be teetering on the edge of a recession after PMI data revealed that the economy contracted in July. This comes ahead of a busy week of data releases which will provide further information on the state of the economy.
In the US, all eyes will be on the Federal Reserve’s next interest rate decision on Wednesday. Another 75-basis point hike could be on the cards.
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