Following the excitement of sterling breaking multi-month records early on Monday against the euro, the pound weakened a little yesterday but remains above the €1.18 level.
A different story for GBP/USD, however, with the pound continuing to build. It has now recovered the month’s losses – around 3% – but has another 3% or more to return to the highs of springtime.
In the business news, China’s economic growth has begun to slow down, weighed down by power shortages, problems in the property industry and supply chain issues globally.
In the UK, an economic windfall from higher than expected growth will be diminished by rising inflation, according to a report from the Resolution Foundation.
There is also continued debate as to whether the Bank of England could move too early on raising interest rates, just as the post-pandemic boom is beginning to peter out amid supply shortages and rising prices.
Next week Chancellor Rishi Sunak will be delivering the Autumn Budget.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
