After a steady start to the week, the pound fell against the euro yesterday following Russia’s orders for its troops to retreat from Kherson, Ukraine, in face of advances.
It was a similar story for GBP/USD rates which fell yesterday as results trickled in from the US midterm elections. Against the US dollar, the pound is currently trading approximately 15% lower than it was this time last year. Whatever the markets saw in the results of the election for the US dollar, they obviously liked.
In the news, furniture store Made.com, which rose to fame during the pandemic, expects to go into administration this week as attempts to find a new buyer failed.
Next CEO Lord Wolfson is reportedly urging the government to let in more foreign workers to alleviate chronic labour shortages.
It was a busy day for data in the US yesterday as US stocks turned lower, mortgage applications reportedly fell for the 7th week running and wholesale inventories advanced by 0.6% in October.
European equity markets closed slightly lower yesterday as both the benchmark Stoxx 600 and German DAX down less than 0.3%.
This afternoon, the US inflation rate is expected to fall 0.1%, from 8.2% in September. The Federal Reserve is due to make six speeches throughout the day.
At 2pm today, we will hear from Bank of England economist Silvana Tenreyro.
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GBP – Down across the board for sterling
Yesterday was a rocky day for sterling as it fell approximately 1.5% against the US dollar. It’s not clear at this moment what caused this change.
EUR – The euro advances against the pound
The euro made steady gains against sterling yesterday despite the Eurozone’s battle against high inflation and a looming recession.
USD – A busy week for the US dollar
The US dollar made significant advances against the pound yesterday despite stock markets drifting lower as election results reported “too close to call.”