After UK inflation held steady yesterday at 6.7%, the pound shot up against its major rivals but by the end of the day was unchanged against the euro and down half a per cent against the US dollar.
Economists believe the renewed strength of the greenback follows investors’ risk aversion tactics which consider the US dollar a safe-haven asset amid ongoing tensions in the Middle East.
Global stocks across Europe fell for a second consecutive session this morning and government bond yields continued to rise.
Oil prices rose on Wednesday following a blast at a Gaza hospital that killed and injured hundreds of Palestinians. It also caused concerns about global oil supply disruption. The global benchmark, Brent crude futures, edged up $3, or more than 2%.
In the eurozone, inflation fell to 4.3% in September from 5.2% in August and the lowest since October 2021.
New residential construction projects in the US rebounded by 7.7% in September to a seasonally annualised rate of 1.36 million. This fell short of a 1.38 million estimate but rebounded from the three-year low of 1.27 million in August.
In Australia, the jobless rate was at an unexpected three-month low of 3.6% in September easing from August’s rate and expectations of 3.7%.
Today is quiet on the data front with a speech from Federal Reserve chair Jerome Powell at 5 pm (UK time). Tomorrow, the spotlight will be on UK consumer confidence and retail sales.
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