Sterling strengthened over the course of yesterday against the euro and US dollar. This morning that has reversed against all currencies, as UK households face huge energy bills.
The week ends quietly for data releases in the UK. In the US, however, the Jackson Hole Economic Symposium continues, with an important talk from Federal Reserve chair Jerome Powell.
Ahead of that, US jobless claims were shown to be declining yesterday, despite the economy as judged by GDP falling by 0.6% between April and June.
In the eurozone, minutes from the most recent meeting of the European Central Bank (ECB) showed that it is worried about the fall in the euro, as it fell to parity with the US dollar.
GfK consumer confidence was lower for the German economy this morning, at -36.5 even worse than the 31.3 predicted and well down on last month. French consumers, using a different measure, are also pessimistic, but less so than last month.
The UK’s energy price cap has been increased by 80% to £3,549, meaning a significant increase in household energy bills.
Next week is a Bank Holiday Monday and then a relatively quiet one for data, but does mark the end of the Tory leadership race, with a new prime minister in 10 days’ time.
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