The pound continued to rally against the US dollar on Wednesday ahead of UK factory order data and UK GDP figures. The pound also strengthened 0.2% against the euro, returning its weekly performance to positive territory.
This morning the Office for National Statistics revealed the British economy grew by 0.2% in August 2023. This matched market estimates and pleased investors, especially after July’s 0.6% contraction.
US producer prices rose more than expected in September, outperforming forecasts of a 0.3% gain by 0.2%
The European Central Bank revealed that the medium consumer expectations for inflation in the euro area edged up to 3.5% in August, reflecting an increase from the previous two months of readings which saw an 18-month-lows of 3.4%.
The single currency rallied against the US dollar yesterday but lost momentum towards the end of Tuesday. The EUR/USD exchange rate is currently up close to 0.9% compared to this time last week.
The Mexican peso continued to climb against the US dollar yesterday. Compared to this time last week, the Mexican currency is trading approximately 0.7% higher.
It wasn’t all bad for the US dollar though, which gained close to 0.4% on Wednesday against the Japanese yen, largely due to a lack of Japanese data.
London Luton Airport reopened yesterday afternoon, following a car park fire that started on Tuesday evening and caused all flights to be grounded.
The World Bank’s president Ajay Banga urged further action on providing debt relief at the Bank’s annual meeting in Marrakech yesterday. He said goals to reduce poverty and hit global net zero are being hindered but there was no “magic wand” to make the problem go away.
Ahead of US inflation this afternoon, where markets forecast the rate to remain unchanged at 3.7%, Federal Reserve governor Christopher Waller said it had been “very good” for the last three months. He added, “If current trends continue, inflation will basically be back to the target.”
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