Morning all
1st November! That came around quickly!
GBP
“Better, but not good,” is how Goldman Sachs describes the British Pound’s prospects in the wake of Rishi Sunak’s appointment as PM. Sunak and Hunt will have to preside over a regime of higher taxes and lower spending as they try to convince the market that they can be trusted to deliver sound fiscal policy. From various articles that we have been reading, it looks like there is a hole of £35bn to fill. A sharp contrast to the swinging tax cuts and stimulatory policies of Truss and Kwarteng…
Looking across the big hitters we are looking at an average forecast interest rate rise of 1.42% before the year is up.
Forecasts next for EUR and USD, 3, 6 and 12 months below. As you can see below we are due a significant dip whilst the market processes the PM’s plans…
EUR
1.14, 1.15, 1.17
USD
1.10, 1.11, 1.22
Have a good day