The pound put in another solid performance yesterday after the Chancellor boosted confidence around the UK economic recovery. Sterling held its ground above €1.11 against the euro while it managed to overcome the $1.26 handle against the buck in late New York trading.
Chancellor Sunak’s statement was well received yesterday. The 40-year-old, ex Goldman Sachs, rising star put in a confident performance in which he announced several policies to assist businesses and individuals in terms of getting back to work and minimising any potential job losses. The stimulus package equated to around £30 billion and was unsurprisingly focused around the UK labour market.
Sterling reacted positively as the government’s proactive approach reassures investors that the UK economy will eventually be able to rejuvenate. Many will be keeping a close eye on GBP to see whether it can build on its recent gains or whether the sellers will take this opportunity to step in.
Today’s economic calendar is rather light. The highlight of today’s session will come from our friends over in the US. Initial weekly jobless claims as well as wholesale inventories will cross news wires in the afternoon session.
Written by Viv Savani. 8:51am, July 9th 2020
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