The pound surged yesterday, strengthening by between 1.3% and 2.6% against its major rivals. This comes as the Chancellor of the Exchequer makes an early return from an IMF meeting in New York amidst rumours that he is being forced to backtrack on the promised cut in corporation tax.
There were reports that Conservative MPs will attempt to defenestrate both the Prime Minister and the Chancellor and replace them with a ‘dream ticket’ of Sunak and Mordaunt.
In the financial world, in the USA the core inflation rate, which takes out the more volatile energy and food costs, continued to accelerate, advancing to 6.6%. This suggest that the Federal Reserve will have to continue sharp rises in interest rates.
The boss of JP Morgan warned that the US economy was unlikely to enjoy a ‘soft landing’. In economic terms this means a slowdown engineered by the central bank which doesn’t result in recession. Jamie Dimon suggested that a recession was more likely, whether mild or tough.
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