Sterling has strengthened to its highest rate since early September against the euro this morning, in the wake of a complete reversal of fiscal policy from the new chancellor Jeremy Hunt.
He has said this morning that parts of the medium-term fiscal plan will be released today, rather than the 31st October that Kwarteng had announced. In the meantime most of the original plans already appear to have been reversed.
In our Quarterly Forecast, published last Wednesday, we posed the question on the cover, Does Trussonomics have a future? Well I think we know the answer to that, but what about Liz Truss herself? Amidst the financial chaos, and financial institutions warning of a deeper recession next year than predicted, all the newspapers are reporting moves from ‘senior Tories’ to remove Liz Truss.
Please do download the forecast here. It contains the lowest forecasts for GBP/EUR and GBP/USD in the years we have done these reports. For our business clients we offer a more in-depth document, with an analysis of the UK, US and European economy and central bank action. However it is freely available for anyone to read, so why not call your trader today on 020 8108 5163 and ask for it? If you don’t yet have an account, sign up via the link below. It only takes a minute or so and you will be assigned a personal trader to talk through your plans.
We published the Quarterly Forecast on Wednesday and already the cover is a little out of date (don’t worry the forecasts are not). If I were Kwasi Kwarteng I would be jetting off for a long holiday this morning, or possibly retirement abroad, and at least he will find that his pounds buy more euros and dollars this morning. The pound is having a good morning so far, up 0.7% or so against the euro and almost 1% against the US dollar.
To lock in that rate with a forward contract, please call your trader on 020 8108 5163.
