Sterling gained close to 0.5% against the US dollar yesterday after Andrew Bailey, governor of the Bank of England reported the central bank is on “heightened” alert for further turmoil in the banking sector.
In a speech with MPs yesterday, Bailey ensured the Bank would “go on being vigilant” and stressed its focus is on lowering consumer prices.
Supermarket inflation in the UK hit an all-time high of 17.5% in the four weeks leading to March 19. Data firm Kantar confirmed the latest price rises reflect the average annual household bill for groceries has increased to £5,617.
Yesterday we heard Royal Mail was in talks to resolve a long-running row with staff about pay. The Royal Mail board is reported as threatening to put the firm into administration if a deal cannot be made.
While it was a quiet day for news on Tuesday, we heard the US house price index rose 2.5% year-on-year in January 2023. This marked the smallest price increase since 2019.
This morning, German consumer confidence rose to -29.5 heading into April, from -30.5 in March 2023. This is the highest reading since July and economists believe income expectations were the main contributor.
It was a different story for France though, whose consumer confidence dropped to 81, from 82 a month prior. This is the lowest reading since September 2022.
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