This morning the pound has continued to weaken against the euro. Yesterday afternoon sterling saw its biggest fall against the dollar since 2016. today, sterling regains some strength against the dollar but remains low overall.
No data releases from the UK today however on Monday, Britain’s next prime minister will be announced. Polls suggest Liz Truss is expected to win so markets will be “pricing in” this outcome. If Sunak wins against expectations, this could cause unexpected volatility for sterling.
In the wake of the increasing cost of living and energy market crisis, the treasury is preparing for emergency options for Britain’s next prime minister.
