Good afternoon,
GBP has plunged to fresh lows against both USD and EUR across yesterday’s trading session. Growing concerns around the current energy crisis has seen the pound drop to 1.1633 against EUR and 1.3640 against USD.
UK gas prices have increased by over 250% from the beginning of the year and are showing little signs of slowing. CF Industries – a US company that produces a large portion of the UK’s CO2 requirements closed down two of its fertiliser plants amongst concerns over profitability with rising energy prices. The two plants closed supplies most of the CO2 used in the UK food production industry and warnings of food shortages. A deal has now been struck between the UK government and CF Industries to re-open the two plants, although the exact details of the deal remain unknown.
Investor concerns seem to be easing around the fate of Evergrande, China’s second largest real-estate company. Reassuring statements from the company’s chairman coupled with a lack of action from China’s commercial banks is boosting the improved sentiment. Concerns are arising however that these shifts in sentiment may be short-lived. The real-estate giant currently owes over $300 billion and is struggling to tackle the mounting debts. China was on a national holiday yesterday so investors will look to the People’s Bank of China today for an update on their stance.
Looking into the calendar today – Japan will be releasing their interest rate decision in the early hours which is expected to hold at -0.1%. The Federal Reserve will also release their Monetary Policy Statement and interest rate decision, expected to remain at the current 0.25%.
Have a good day.
James Camp, 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/currencies/gbpusd