Supercharged support

Today's news headlines:

‘Truss Drafts £130 Billion Plan to Freeze UK Energy Bills’. The UK’s incoming PM is set to hit the ground running with a planned freeze on household energy bills. The intervention, which could cost the Treasury £130bn over the next 18 months, is a step further than the original plan to extend the existing support package from £400 to £1,000. The trade-weighted Pound rose in response to the news as markets prepare for a UK government ready to support consumers and businesses, but fears remain that all the incoming support will stoke inflation higher. (Bloomberg)

‘German Factory Orders Fall for Sixth Month Amid Energy Squeeze’. New factory orders slipped 1.1% from June, worse than the 0.7% drop predicted by economists, amid uncertainty over energy security in Europe’s largest economy. With Russia cutting supplies of its natural gas, the risk remains that Germany will run into an energy crisis this winter. Even if a crisis can be averted, cost increases will continue to hit services and manufacturing activity, probably tipping the German economy into recession. (Bloomberg)


Today

Aside from the broad-based increase for Sterling, overnight, equity markets were muted, with European futures a touch lower and US futures a touch higher. The Aussie Dollar moved lower despite a 50bps rate hike from the Reserve Bank of Australia, on comments that future rate increases would be data-driven.

Events

British Retail Consortium Retail Sales Monitor: 0.5% vs 1.6% previously
Reserve Bank of Australia Cash Rate: 2.35% vs 1.85% previously
German Factory Orders: -1.1% vs -0.3% previously
UK Construction Purchasing Managers’ Index: 9:30AM
US ISM Services PMI: 3:00PM


Interbank rates*:

GBP/USD: 1.1590
GBP/EUR: 1.1620
EUR/USD: 0.9970
USD/CAD: 1.3120

 

Please contact your Dealer about any upcoming FX requirements you may have, or call +44 (0)20 3465 8200. 

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