In his first speech as Britain’s new prime minister, Rishi Sunak warned that more “difficult decisions” are on the horizon for the UK. Sunak acknowledged that he was elected during a time of “profound economic crisis” but vowed to clean up the economic mess left by Trussonomics and the mini-budget debacle.
Markets seemed to welcome Sunak’s leadership as sterling leapt against the dollar yesterday afternoon during the lead up to his appointment as PM. The pound maintained most of its gains for the remainder of the business day and continues on the same path this morning.
The rest of the week will be relatively quiet for UK data releases. Today markets will see the UK’s 7-year bond yield data, while on Thursday CBI distributive trades for October will be released.
Eurozone markets have just seen France’s latest consumer confidence reading. It was forecast at 77 and exceeded market expectations coming in at 88. This follows last month’s decline in consumer confidence from 82 in August, to 79 in September.
In the US, new home sales data will be released at 3pm at the same time as the Bank of Canada’s interest rate decision.
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