The pound was given a boost earlier in the week due to better-than-expected jobs data. However, figures released yesterday showing that inflation is rising at its fastest pace in 40 years have subsequently weighed on sterling.
The US stock market posted its largest daily drop in more than two years yesterday due to worries about a looming recession. This follows comments from Federal Reserve Chair, Jerome Powell, who said that the central bank will continue to raise interest rates to tackle high inflation.
Concerns about economic growth were exacerbated by poor US housing data, which showed that housing starts and building permits decreased in April. All eyes will be on existing home sales figures, due to be released today.
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.
