Hope you have had a good weekend…
Looks like Boris has stepped aside leaving Rishi the clear favourite this morning. Expect an announcement at 2pm, chances are he’ll be in the hot seat by close of business today as Ms Mordaunt is heavily down on backers. Result? Massive relief rally (GBP strength) – GBPUSD has nearly caught up with GBPEUR! Could this be the start of a new trading range and an early fresh New Year’s Resolution for GBP? I personally think so, Rishi from the offset maintained that Liz Truss’ budget was unsustainable and more of a pipe dream. He was right. Could this be our first ever honest politician, or an oxymoron…
Big day on Thursday. Expecting the European Central Bank (ECB) to raise interest rates a second consecutive time, an additional 0.75%. I personally can’t see this hike being priced in so if we see it, expect GBPEUR to tread water. Anything short of that expect a large surge towards 1.20, bearing in mind the ECB have suggested that they are due another 0.75% in November and December! Watch this space.
American data still outrageously strong and rightly so. I can’t see any potholes in the road ahead for the US so all eyes really on the UK if you are a USD purchaser….
Have a good start to the week