Over the course of Monday the pound lost value against the US dollar while gaining around a third of a cent against the euro. That has been pared back a little this morning, but new jobs data has so far failed to excite the markets. However, sterling is now at a three-week low against the dollar.
There were no significant data releases in the UK yesterday, but this morning we have heard that UK unemployment remains steady at 3.8%. While incomes have risen ahead of expectations, by 4.7% excluding bonuses, this is well below rising prices, indicating a declining standard of living. Grocery prices as surveyed by Kantar this morning are rising by 11.6% per year.
In business news the oil price has fallen to its lowest level since the Ukraine war started in February. Not just good news at the petrol pumps, it could limit general inflation too.
However, it’s less good news for the commodity-backed currencies such as the Australia dollar, also being affected by the Chinese economy slowing down again. Data yesterday showed that Chinese consumers are spending less than expected, house prices are falling and industrial production has slowed.
In political news, leader of the opposition Sir Keir Starmer has outlined Labour’s plans for tackling the cost of living crisis.
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