IFX Market Report: Thursday 1st December 2022

The pound has been ‘choppy’ over the past few days, when yesterday saw the pound dip to 1.1899 before rebounding to 1.20 later in the afternoon.

BOE Governor Andrew Bailey has indicated that they were left blindsided by Kwasi Kwarteng’s disastrous mini-budget, describing an “extraordinary process” in which there was “no formal communication” before the chancellor unveiled his measures.

UK house prices fell 1.4% this morning, the sharpest rate since 2020 after the effects of the mini budget kicked in. However experts think that this could be a dip rather than a crash.

Despite the dip in house sales this morning the pound has pushed up against the dollar after the US FED Reserve chair Jerome Powell said that it was time to slow interest rate hikes, and that the US could start to cut rates back as early as next year. The announcement comes after US GDP figures came out better than expected earlier this week which I deemed to be positive for the global economy.

Analysts believe that Brexit added around £6bn to the UK food bill in 2020 /2021 which equates to around £210 per household.

GBPUSD currently resides at 1.2137

GBPEUR currently resides at 1.1621

EURUSD currently resides at 1.0444