We have a new Prime Minister...again. Whilst it seemed almost certain that Rishi Sunak would get the job the Pound market has relaxed somewhat on the back of what appeared to be inevitable. GBP/EUR and GBP/USD rates dipped through the course of yesterday, but seem to have found a bit of footing in the early hours.
The general rhetoric suggests Mr Sunak needs to hit the ground running with the outgoing Prime Minister leaving him a bit of a shaky hand on the table. Bit of a double edged sword. Plenty of difficulty ahead, however it would be very difficult to do a worse job.
However it's not just the political landscape that has affected rates. The Office for National Statistics (ONS) has released its data around household goods price hikes. The cost of living crisis comes sharply into focus on the back of this data. The ONS has disclosed that, for example, pasta has increased in price by 65% in the last 12 months and tea has increased by over 50%. It has to be said that some items have actually decreased in price, such as beef mince, but overall it's a gloomy outlook.
Today is very light on scheduled news as the markets turn to Thursday when there's a raft of explosive data scheduled. There's US consumer confidence later and Australia releases its inflation numbers in the early hours of tomorrow.
Today’s Economic Calendar
US: 15:00 Consumer Confidence
AUS: Wednesday 01:30 Inflation Data
As ever we look forward to keeping you in the loop and look out for our next update.
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