Today's news headlines:

‘Sunak’s prize for predicting Truss chaos is chance to fix damage’. Today, Rishi Sunak will meet King Charles before formally replacing Liz Truss as UK premier; then, the tough task will begin as he looks to fix an economy in crisis. Sunak prophesised much of the chaos that ensued after Truss’s radical economic plan, lending him credibility with fellow MPs, but it’s still uncertain whether he can reunite a deeply divided Conservative Party. The former Chancellor is expected to keep Jeremy Hunt as head of the UK’s Treasury in a sign of stability, and we should also learn later today which other MPs will fill a role in his Cabinet. (Bloomberg)

‘Europe’s inflation squeeze to linger even as gas prices drop’. Benchmark gas futures have dropped well below this summer’s peak, falling under $100 per megawatt-hour for the first time since June. However, the slow pass through to energy bills, along with the broad increase in prices of goods and services, will mean high inflation continues to hit households in the coming months. Fears of shortages this winter have subsided as milder autumn weather has allowed storage vessels to be filled. However, the price could rise once colder winter weather sets in, with fears mounting over supply shortages from Russia and added competition for resources from China. (Bloomberg)

Today

The Chinese Yuan fell to its lowest level since trading began after president Xi Jinping’s power grab prompted fears of more destabilization in the region. The trade-weighted US Dollar was little changed overnight as traders weighed whether the Federal Reserve is approaching the end of its rate tightening cycle.

Events

German ifo Business Climate: 9.00AM
MPC Member Pill speaks: 9.55AM
CBI Industrial Order Expectations: 11.00AM
CB Consumer Confidence: 3.00PM
Richmond Manufacturing Index: 3.00PM
FOMC Member Waller speaks: 6.55PM

Interbank rates*:

GBP/USD: 1.1283
GBP/EUR: 1.1426
EUR/USD: 0.9875
USD/CAD: 1.3700

 

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*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.