The pound to euro rate has fallen today despite the pound gaining fresh strength following Liz Truss being appointed Britain’s new prime minister. Sterling has also weakened against the dollar today after shooting up in what analysts call a “knee jerk reaction” the electoral news on Monday.
In her first speech as PM yesterday, Liz Truss made efforts to fuel the nation with optimism following the economic headwinds the UK continues to face. Truss doubled down on her determination to “rebuild our economy” so that the country can become “the modern, brilliant Britain” Truss she knows “it can be.”
In the eurozone, as well as the tightening squeeze on gas supplies,higher borrowing costs are on the horizon for the eurozone. The European Central Bank’s interest rate decision will be announced tomorrow and markets are expecting the ECB to lean towards a 75 basis point increase in an attempt to control the eurozone’s soaring inflation
As central banks endeavor to tackle soaring inflation, the US will hear three key speeches from members of the Federal Reserve today. The first will be from president and CEO of the Federal Reserve Bank of Richmond, Tom Barkin at 2pm, followed by Loretta Mester, the CEO of the Federal Reserve Bank of Cleveland, and finally by the Fed’s Vice Chair Lael Brainard.
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