The pound reached a one month low against the dollar and a two-week low against the euro yesterday, as the UK’s energy crisis has taken its toll. A cautious market mood is also affecting sterling, prompted by Chinese property company Evergrande’s debt troubles.
The UK is heavily reliant on gas, meaning that the crisis has impacted the pound more than most other currencies. Prime Minister Boris Johnson said yesterday that the government is taking “direct steps” to ensure CO2 remains available.
It’s a light day for UK data today, but all eyes will be on tomorrow when Flash PMI data will be released, followed by the Bank of England’s monetary policy meeting.
