Sterling begins the week stronger than it did against the us dollar last week despite gdp data revealing that the UK’s economy contracted by 0.2% in the most recent quarter.
BoE governor Andrew Bailey said that “efforts to bring inflation under control are likely to take between 18months and two years”. Despite Bailey’s hawkish remarks sterling remained largely unchanged against the dollar.
This week markets will be eagerly anticipating the Chancellor’s long-awaited autumn statement which will be delivered on Thursday afternoon. In the statement, Jeremy Hunt will outline the UK’s tax and spending plans. Leading independent economics research organisation, the Institute for Fiscal Studies, says “big and painful cuts” to public services are likely.
Also on Thursday, markets will see key data released for US housing starts and building permits.
With current market volatility, we believe it has never been more important to share recommendations and collaborate with other businesses. Make a Smart referral today and receive a £200 Amazon voucher! Plus, you’ll be entered into our prize draw for a chance to win £2000 towards a work event of your choice. Our prize draw closes in less than one month, on December 2nd . Make your referral here.
Over in the eurozone, Ukranians celebrated as Russia announced its retreat from Kherson on Friday. Though this marked a major victory for Ukraine, president Zelenskiy said that the occipiers “destroyed all the critical infrastructure : communications, water, heat, electricity”. Kherson’s major said the humanitarian situation there was “severe” due to the lack of key resources available in the southern city; including water, medicine and bread.
US producer price index will be released on Tuesday. The figures for September rose 0.4% month-over-month. In tomorrow’s data release markets are expecting the index to fall gently to 0.3%.
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.
