020 7898 0500
The dollar grew throughout Wednesday. As the markets closed, it was up 0.5% on the euro and nearly 0.4% on the pound. Sterling took the middle path, ending the day slightly up on the euro.
While there was no major economic news in the UK on Wednesday, the chief executive of pharmaceutical company Eli Lilly, maker of weight loss drug Mounjaro, said the UK is “probably the worst country in Europe” for drug prices.
UK science minister, Lord Patrick Vallance, suggests there are plans to start paying more for drugs to stoke investment from the pharmaceutical industry. Which would likely mean higher costs for running the NHS, which would impact Chancellor Rachel Reeves’ autumn budget on November 26.
The dollar’s good day doesn’t appear to be driven by economic news. And it may be a sign that traders are putting money into a currency bolstered against the current economic and political uncertainty. This afternoon will see the US Bureau of Economic Analysis publish GDP growth rate figures, which will reveal some of the impact of President Donald Trump’s tariffs.
Germany’s Ifo Business Climate Index showed growing pessimism among firms, with a 1.2-point fall. The index was forecast to show slight gains, so this negative move could indicate the direction of travel for the EU bloc.
However, to complicate the picture, this morning’s German Consumer Confidence survey shows above expected gains. Making it unclear what the future of the euro holds.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Business Account manager on 020 3918 7255 to get started.
GBP: Slammed by drug boss
The pound was just shy of 0.1% ahead of the euro on Wednesday and trailed the dollar by 0.3%. The CEO of pharmaceutical company Eli Lilly hit out at the UK for being an unwelcome market for its drugs, suggesting change was needed to invite investment.
GBP/USD past year
EUR: Muddled picture from Germany
The euro trailed both the pound and dollar, lagging nearly 0.1% behind GBP and 0.5% behind USD. There are confusing signs out of Germany, where business optimism is declining but consumer confidence is gaining.
EUR/USD past year
USD: Dollar gains point to uncertainty
The dollar led Wednesday, gaining 0.5% on the euro and nearly 0.4% on the pound. However, there was no clear reason for the gain, suggesting it was driven by market uncertainty. New GDP data this afternoon will paint a clearer picture of the US economy.
USD/GBP past year
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business account manager on 020 3918 7255 or your Private Client account manager on 020 7898 0541.
