The Federal Reserve will conclude its latest two-day monetary policy meeting today and the markets will be listening for any comments surrounding the tapering of monetary support measures. The dollar and other currencies could be impacted by rhetoric from officials.
Sterling is still suffering following news of the energy crisis. As the UK is heavily reliant on gas, the pound has been impacted to a greater extent than most currencies. Yesterday, it was announced that the government has reached a deal with American company CF Industries to restart carbon dioxide production at its UK plant.
Reports this morning have also revealed that during talks about a post-Brexit free trade deal with the Prime Minister, President Joe Biden has said that the two will have to “work that through”. UK ministers are said to be considering the implications of joining a North American trade pact rather than creating a separate deal. Any further news on this could affect the pound.
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