Another volatile 24 hours for the Pound. The biggest story was obviously Ms Truss resigning as Prime Minister. This led to an immediate strengthening of the Pound versus both the Euro and the Dollar. With a new Prime Minister promised by the end of next week it puts Rishi Sunak (who openly decried Ms Truss's plans) back in the spotlight for PM which traders appear to like.
However this mornings news has dampened spirits again. A bit of a mixed bag but more negative than positive for the Pound. First up the Gfk consumer confidence came in at negative -47 against a predicted negative -52. This was soon undermined though by poor public sector net borrowing of £19.24 billion for the month and way worse than expected retail sales figures. Analysts had expected year on year contraction of -5% and the actual number was negative -6.9%.
This has taken some of the jam out of the Pounds doughnut. GBP/EUR and GBP/USD rates are now back on a very short term level of support. With little scheduled UK news today it will only be a news story (possibly around the next PM) that could bolster Sterling.
Today sees a smattering of European and US news with the highlight being a speech by the ECB President, Christine Lagarde, tomorrow.
Today’s Economic Calendar
US: 14:10 FED's John Williams Speech
EUR: 15:00 Preliminary Consumer Confidence
US: 19:00 Monthly Budget Statement
EUR: Saturday 10:00 ECB's Christine Lagarde Speech
As ever we look forward to keeping you in the loop and look out for our next update.
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