Hope you have had a good weekend and a bearable Monday.
Looking stronger against the major currencies in the final week of July with an improved sentiment amongst investors/traders. Domestically there is little on the UK’s economic calendar and all eyes rest on the Bank of England’s policy decision on the 4th August. Thus most of the rhetoric can be filled on the national media mud slinging event; Rishi vs Liz Truss, who is now the bookies favourite…
A wall of worry is blocking the above currency, mainly EU gas supplies from Russia, surging global inflation and monetary tightening. In turn you could argue this is actually aiding GBP. EUR has weakened over 0.4% yesterday and today alone. However let us not forget that the European Central Bank did raise interest rates to 0.0% for the first time in 11 years as it tries to control soaring eurozone inflation. The rate has been negative since 2014 in a bid to boost the region’s economy after years of weak growth. However I feel that this is not enough as consumer prices rose at a record 8.6% in the 12 months to June as food, fuel and energy costs soared; hence the shaky start to the week.
Big day tomorrow, another interest rate hike? Very much caught in a sideways trading range against GBP so hoping to buck the trend tomorrow…
Here to help as always, have a good day