The Pound strengthened to its highest level in 6 weeks after the government announced it would delay the economic statement by two weeks, which means the new plan will be announced November 17th. The news saw the pound rise by around 1.2% to peak at 1.1621.
Some of the GBPUSD move was also put down to the US Fed stating that they may slow interest rate increases from what was previously forecast.
The Euro also rebounded against the dollar after the news going back above parity for the first time since September 12th.
French President Emmanuel Macron met with German Chancellor Olaf Scholz yesterday as they sought to strengthen their relationship which has recently been weakened by disagreements on the Energy Crisis and war in Ukraine. France and Germany are the two powerhouses of the EU, so it is critical for them to be united in efforts at a time of crisis.
The European Central Bank (ECB) is looking for a large interest rate increase today. Expectations are that the ECB will hike by 0.75% bringing their interest rates to 1.5%. The large rise comes as they look to tackle the 9.9% inflation from September, which is way above its 2% target, and the highest inflation figure since statistics for the 19-country Eurozone began in 1997.
Data to watch out for today includes the ECB Monetary policy decision at 14.15 and US GDP figures for Q3 at 14.30 which are predicted to show a 2.3%growth in the US economy compared to a -0.6% retraction in Q2. Despite this, most economists are still pessimistic that the US will avoid recession in the short to medium term.
GBPUSD resides at 1.1566
GBPEUR resides at 1.1516
EURUSD resides at 1.0043
