Today's news headlines:

‘UK government hopes to rebuild credibility after BOE bailout’. The Bank of England intervened in markets yesterday, promising to carry out emergency purchases of longer-dated UK gilts in an effort to help restore market stability. This has handed the government some much-needed respite following the turbulent release of last week’s Budget. Rather than making a U-turn on proposed tax cuts, Chancellor Kwasi Kwarteng is expected to offer greater clarity on the announced measures while also offering up details of supply-side reforms. (Bloomberg)

‘Nord Stream gas pipes now have four leaks with another found’. Further damage has been uncovered on the Nord Stream pipeline in the Baltic Sea as further disruptions add greater stress to supply chains. This has been met by increased security measures for energy infrastructure assets in Europe, with some countries placing the blame on Russia amid the country’s invasion of Ukraine. Europe’s reliance on Russian gas has dwindled, with the bloc now sourcing just 9% of its total supply there. (Bloomberg) 

Today

The Pound has broken lower today following two days of gains as risk-off sentiment returns. The Dollar Index is up close to 1% as sovereign bond yields rise. European shares are trading lower this morning, while US equity futures point to the red. 

Events

UK Monetary Policy Committee member David Ramsden speaks: 12:30PM
Canada GDP MoM (July): 1:30PM
US Unemployment Claims: 1:30PM
Reserve Bank of New Zealand Governor Adrian Orr speaks: 2:00PM
US Federal Open Market Committee member James Bullard speaks: 2:30PM
US Federal Open Market Committee member Loretta Mester speaks: 6:00PM

Interbank rates*:

GBP/USD – 1.0792
GBP/EUR – 1.1188
EUR/USD – 0.9646
USD/CAD – 1.3739

 

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.