The pound strengthened to its highest level against the dollar since December yesterday, which was mainly driven by dollar weakness. This morning, the inflation rate for the UK jumped higher than expected in July, which shows that the economy is recovering as lockdown eases. However, there are fears that rising costs may hurt consumers.
Europe also awaits economic data releases later today, including inflation rate figures. In the US, the Federal Reserve will release the minutes from their latest monetary policy meeting. Considering the economic situation in the US, with some businesses still closed due to rising infection rates, it will be interesting to hear what officials say about the outlook.
Make sure you lock in your exchange rate with a forward contract today, so your money isn’t affected by uncertainty. Speak to your Personal Trader on 020 7898 0541 to get started.
