The pound finished at its strongest level since mid-August yesterday against the euro and is still strong this morning. The markets have turned their attention from the UK’s fuel and energy crisis to the prospect of interest rate hikes early next year, giving sterling a boost.
It’s a different story for the euro, which is weaker against the pound and the dollar due to growing worries over how the energy crisis will impact Europe during the winter months. Disappointing economic data from Germany, released this morning, has also added to the single currency’s woes.
In the US, focus is turning to the latest non-farm payrolls report, which is due to be released on Friday. The details of the report could indicate when the Federal Reserve will begin to taper its huge monetary policy programme.
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