The pound continues to weaken against the euro this morning after a seeing record lows last week. Against the dollar, sterling has also declined. In the early hours of this morning GBP/USD was recorded at 1.14, just less than half a percent lower than last Monday’s rate.
The Tory leadership race between former chancellor of the exchequer Rishi Sunak, and foreign secretary Liz Truss concludes today with the announcement of Britain’s next prime minister at 12:30 this afternoon. First on the list for Britain’s new prime minister will be tackling the UK’s rising energy costs. Analysts are expecting gas prices to soar even higher this week following Russia’s closure of its key Nord stream 1 pipeline on Friday, further tightening the squeeze on eurozone gas supplies.
The euro continues strengthen against the pound this morning but has weakened against the dollar after a choppy week. This follows rising gas supply fears following further obstructions to eurozone gas supplies by Russia. On Friday Russia extended their shutdown of gas supplies to Germany through its Nord stream 1 pipeline, which could further amplify the knock-on effects of the energy crisis this winter
All ears will be on the US Federal Reserve this week, as market watchers anticipate another speech from the Fed’s Vice Chair Lael Brainard. Currently, markets are doubtful towards the Fed’s plans to increase interest rates until inflation is under control.
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.
