Morning all
Hope you enjoyed your afternoon yesterday whether it was in the pub or office!
GBP
Thursday’s budget has helped push GBP higher, making us a slightly more palatable investment to other nations now we are looking at tackling our £40billion deficit that Covid created. However GBPUSD is nowhere near where it should be for the USD buyers amongst you and the pessimists are now suggesting that we have yet to absorb the latest negative supply shock from energy prices. Without wanting to sound like a broken record, our final interest rate hike in December will be the key to tackle any inflation woes that our nation is suffering. We have 2 BoE members discussing the situation this week…
USD
PMI figures tomorrow for both the UK and US will break this boring trend we are witnessing for GBPUSD. If we finish above 1.19 on Friday, expect to see GBPUSD trade in the 1.20’s throughout the festive period. Conversely, anything under 1.17 and we can see fresh air to 1.15. Keep an eye out on our Friday update for further details.
EUR
Winter is a notoriously tough time for the Euro with an economy heavily reliant on tourism. Expect GBPEUR to drift higher as the next month unfolds as there doesn’t appear too much data out there to underpin the Euro currently…
Have a good day!