Yesterday the pound strengthened by around 0.25% against the euro and a little more against the US dollar, and that has continued so far this morning.
The euro has weakened marginally, largely based on the threat to European gas supplies this winter arising from the war in Ukraine, and the risk of Germany going into recession.
The US dollar has continued its poor run, ahead of the Fed’s interest rate decision tomorrow. Against the euro, however, there is no clear direction for USD and it remains close to where it spent the latter part of last week.
In the business news, Ryanair showed a small profit this quarter for the first time in over two years. Their chief financial officer was highly critical of airports which he said had one job to do and had failed at it: “to make sure they have sufficient handlers and security staff.”
The port of Dover continued to have long delays for holidaymakers and business, while a report from the government, leaked to the FT, found that the UK’s own post-Brexit red tape was costing the UK chemicals sector £2bn.
Research yesterday found that disposable income in the UK has fallen by a record £44 for an average household in June, the eighth fall on record.
In politics, the Conservative leadership contest still looks evenly balanced after last night’s TV debate between Rishi Sunak and Liz Truss.
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