The pound gained 0.25% against the euro and a little more against the US dollar in Monday’s session as prime minister Rishi Sunak reshuffled his cabinet. This morning’s unemployment data, and continued rise in earnings above inflation, has further boosted sterling.
Home secretary Suella Braverman was shown the door and David Cameron was appointed new foreign secretary yesterday, making his return to government after resigning as PM in 2016 in the wake of losing the Brexit referendum. This appears to have been welcomed by the markets.
This morning the UK unemployment rate came in at 4.2% in September, no change from August but better than market expectations of 4.3%.
The average salary in the UK (including bonuses) increased by an annualised rate of 7.9% in the three months to September, down on the previous period but, again, well above expectations. The pound has recovered as a result, presumably as the markets view the possibility of yet more interest rate rises as the UK economy proves resilient to the Bank of England’s inflation-busting moves.
In business news, a forthcoming report commissioned by the chancellor Jeremy Hunt will apparently suggest that a new ‘concierge-type’ service is required to attract Foreign Direct Investment (FDI) to the UK. Hunt is keen to counter the efforts of competitors such as the USA, with its $369bn US Inflation Reduction Act.
Communications regulator Ofcom revealed Royal Mail were fined £5.4 million for missing its delivery targets by ‘significant and unexplained margin’ causing customers ‘considerable harm.’
On a lighter note, beauty company Avon, made famous by its door-to-door visits is to open its first UK stores after 137 in operation as an online-only store.
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