Truss continues with ‘pro-business’ agenda
Today's news headlines:
‘King dollar’ surges as Fed presses ahead with rate rises’. The Greenback has experienced consistent gains for the last three consecutive months as soaring energy prices across Europe, exacerbated by the conflict in Ukraine, have weighed down on European economies. Meanwhile, Sterling and Euro have slumped 7.4% and 6.6%, respectively, since June, and the US Dollar index has seen a 14% rise since the beginning of the year. The US Dollar’s strength against other currencies looks unlikely to slow as European countries are forced to search for alternative natural gas sources, and expectations continue for the Federal Reserve to raise US interest rates to tackle soaring consumer prices. (Financial Times)
‘Liz Truss rules out new taxes in final push to become UK premier’. In her final address to Conservative voters, leadership frontrunner Liz Truss has vowed never to introduce new taxes as Prime Minister while rejecting the notion of a windfall tax on UK gas and oil companies that have enjoyed record profits this year. Truss has maintained that her administration will be ‘pro-business’ and will ensure that businesses and high streets in the UK will be able to endure surging energy prices by exploring policies such as a reversal in the rise of national insurance. The Tory leadership race is scheduled to come to an end this week, with final votes being collected on Friday and a new leader announced on Monday. (Financial Times)
European stocks are expected to open lower this morning as the closure of the Nord Stream 1 pipeline coupled with tightening monetary policy threatens Eurozone economies. Chinese manufacturing activity contracted this month against expectations, and now all eyes turn to the corresponding data from other economies for comparison.
Swiss Consumer Price Index m/m: 0.3% vs 0% previously
French final Manufacturing Purchasing Managers’ Index 8:50AM
German final Manufacturing PMI 8:55AM
Eurozone final Manufacturing PMI 9:00AM
UK final Manufacturing PMI 9:30AM
Eurozone Unemployment Rate: 10:00AM
US Unemployment Claims: 1:30PM
Canadian Manufacturing PMI: 2:30PM
US ISM Manufacturing PMI: 3:00PM
GBP/USD – 1.1590
GBP/EUR – 1.1570
EUR/USD – 1.0200
GBP/CAD – 1.3165
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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.