It was a quiet session for most currencies yesterday, the markets waiting for next week’s interest rate-setting bonanza from the US, eurozone and British central banks.
Of all, the euro fared worst yesterday, dropping by around a quarter of a percent against most other major currencies.
So far today, however, the pound has come off worst, losing half a cent against the US dollar.
In a speech starting around now, Chancellor Jeremy Hunt is likely to reject calls for big tax cuts in the Budget in six weeks in favour of continuing to balance the books. However, he faces criticism from right-wing fans of Trussonomics that a too-cautious economic agenda will simply give a better set of books to an incoming Labour government in two years.
In economic news, the British car industry has seen a 10% fall in new car production to 775,000 in 2022; a 66-year low. A shortage of supplies – especially semiconductors – was blamed, as well as the closure of Honda’s factory in Swindon. Electric car production was one high spot, with battery-only models selling 2.5% more. However, a report from the Department for Transport found that there are now 30 electric vehicles for every charging point in the UK, compared with 16 in 2020.
There also looks to be bad news for HS2, with claims that the new line will not, after all, reach central London, but link into the Elizabeth Line five miles to the north, at Old Oak Common.
More positively, labour productivity has increased by 0.1% in Q3 of 2022, although it is only a shade higher than 2019.
In US politics, Donald Trump hits the campaign trail this weekend – still the only declared candidate – and both commentators and opponents will be keen to see if he can still fire up a crowd.
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