Good morning,
Anticipation continues to build around the Bank of England and the expectation of an interest rate rise being voted for by the Monetary Policy Committee. GBP has continued to gain in strength and has touched a multi month high against the single currency of the continent, with bond yields also rising. Looking back on the charts, we have to go back to the middle of August, which was during the sell off after the pound sailed through the 1.18 mark for only the second time this year. Looking back further from that point, you would have to go to February 2020, when the Covid pandemic first broke out in the UK. The Eurozone has also struggled more than the UK with the recent gas issues. It has been reported the UK has actually exported gas to the continent, leaving the euro in a weaker position compared to its peers.
Versus the dollar however the story has not been so rosy. The dollar gained on growing inflation worries, with the flight back to the safety of the haven currency a natural occurrence. This morning the pair has seen a slight gain, with a move back towards the 1.36 mark. The pair could come back under pressure, with the US Non-Farm Payroll figure released tomorrow.
Boris Johnson was speaking at the Conservative Party conference yesterday where he mainly emphasised the point of “uniting and levelling up the UK”. The Prime Minister made an “upbeat” 45-minute speech, where the Government would focus on creating a high wage and high skilled economy post Covid pandemic and Brexit. The address to the party did not, however, deliver much in the way of new policy.
Have a great day.
Author: Jack Nicholls, Senior Relationship Manager.
Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available here.
References
https://www.fxstreet.com/news/gbp-usd-consolidates-below-13600-with-support-at-13540-202110061820