The dollar’s losses and the euro’s gains continued into another week. Between the two, the pound strengthened against the former and lost against the latter yesterday.
On the economic front, the European Union has agreed to ban 90% of oil imports from Russia in response to the invasion of Ukraine. While the necessary change in oil supplier could potentially affect European business, the agreement appears to have bolstered EU unity, and the news does not so far appear to have affected the euro. In the meantime the price of oil has risen to $124 per barrel.
Inflation is rising ahead of expectations in the eurozone and that is increasing calls for a significant interest rate rise from the European Central Bank (ECB), from the current minus 0.5%.
IN the UK, however, a business survey from Lloyds Bank has found business confidence at its highest since the Ukraine war started in February, with 53% intending to recruit more staff.
In politics, further letters went in from Conservative MPs in the wake of the Sue Gray report, making 29, expressing no confidence in Boris Johnson as leader. For now the number remains below the 54 required for a vote, but not all letters will have been public, so there is certainly a risk for Johnson’s premiership.
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