The dollar grew throughout Wednesday. As the markets closed, it was up 0.5% on the euro and nearly 0.4% on the pound. Sterling took the middle path, ending the day slightly up on the euro.
While there was no major economic news in the UK on Wednesday, the chief executive of pharmaceutical company Eli Lilly, maker of weight loss drug Mounjaro, said the UK is “probably the worst country in Europe” for drug prices.
UK science minister, Lord Patrick Vallance, suggests there are plans to start paying more for drugs to stoke investment from the pharmaceutical industry. Which would likely mean higher costs for running the NHS, which would impact Chancellor Rachel Reeves’ autumn budget on November 26.
The dollar’s good day doesn’t appear to be driven by economic news. And it may be a sign that traders are putting money into a currency bolstered against the current economic and political uncertainty. This afternoon will see the US Bureau of Economic Analysis publish GDP growth rate figures, which will reveal some of the impact of President Donald Trump’s tariffs.
Germany’s Ifo Business Climate Index showed growing pessimism among firms, with a 1.2-point fall. The index was forecast to show slight gains, so this negative move could indicate the direction of travel for the EU bloc.
However, to complicate the picture, this morning’s German Consumer Confidence survey shows above expected gains. Making it unclear what the future of the euro holds.
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