The pound strengthened slightly against the euro and the dollar over the course of yesterday but is still being weighed down by several factors.
The first being the end of the UK’s furlough scheme. The scheme finished yesterday, leaving around one million people who were still on the scheme uncertain of their future employment status.
As has been the case all week, the fuel crisis also continues to weigh on sterling. The Petrol Retailers Association said that there does not seem to be any sign of improvement, with more than a quarter of its members’ petrol stations having no fuel yesterday.
In terms of data, the Institute of Directors index of business confidence showed that business confidence in the UK has “fallen off a cliff”. House prices continue to grow in the UK, rising 10% month-on-month in September. Markets will now be paying close attention to Markit PMI for September which is due at 9:30 this morning.
