Data released yesterday revealed that US inflation hit a 40-year high in June, reaching 9.1%. This was higher-than-expected and was driven by high energy and food costs. The dollar has strengthened on increasing worries of a recession.
In response to this, the euro fell below the dollar, with EUR/USD hitting parity for the first time since 2002.
The pound is still stronger against the euro this morning, benefitting from better-than-expected GDP figures. This has abated worries about the UK economy; however, all eyes will now turn to UK inflation figures next week.
The first results from the Conservative leadership contest were announced yesterday, revealing that Jeremy Hunt and Nadhim Zahawi are out of the running. There will now be a series of ballots until just two candidates remain.
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