By Ashley Finill
Parliament Resumes for the year
Yesterday saw the queen’s speech in the UK which sets out the legislative agenda for the parliamentary year, although Queen Elizabeth didn’t attend due to health issues her son prince Charles delivered her message instead. Key issues were included in this year’s agenda which the government will look to tackle throughout the next 12 months. One of the tasks is moving forward post Brexit with six proposed bills intended to make the UK more competitive and securing trade deals with other across the world. After the speech was made parliament was back in the house of commons and the debates on the speech commenced.
Tough Times Facing UK
One of the main key issues facing the UK today is the sharp rise in the cost of living. Covid-19 is still having a massive effect on all our lives whether it be health wise or economically. Fuel prices continue to rise, Rishi Sunak had introduced a 5p tax cut on fuel only two months ago, however this saving has not been felt as the forecourts prices continue to rise. Food prices also continue to grow and so do energy bills. Last month saw staggering increases on our energy bills which are set to rise again in October, some reports are suggesting. All this is being put to the government and how to tackle these tough times on behalf of the public in the UK. Boris Johnson yesterday told the House of Commons that he had a levelling up plan to deregulate the economy and boost growth whilst also warning the public that his government couldn’t fully protect people from rising inflation. Last week the bank of England made attempts to try and further halt the rise of inflation with a 4th interest rate increase which should have provided sterling with support but the bleak outlook from BoE saw the Pound slump miserably against the majors, losing a few cents on both the Euro and the Dollar. With all the above sterling finds itself in very fragile state and as we have seen over the past few weeks there are no warnings given before the Pound takes a dive. With inflation rising, living costs increasing, Covid-19 still present and war abroad these are certainly unprecedented times we are living in, which makes uncertainty rife which as we know is certainly sterling’s foe. If you have requirements for currency over the coming months, then it may be a good idea to get in contact with your currency consultant today to discuss your options with some friendly professional guidance.
There is a raft of data out before week’s end, starting today in the EU as Germany release harmonized index of consumer prices. There is a speech later today from the ECB’s president Christine Lagarde, these speeches can tend to cause some volatility if an outlook is given on their stance on future interest rate hikes. Later today in the US consumer price index is posted at 12.30pm, later at 6pm the US also release their monthly budget statement, president Biden also is speaking at 6.15pm. Over to Thursday and the UK release GDP, industrial production, and manufacturing production at 6am so tomorrow morning sterling could be on the move early doors depending on the figures released and how far they are from the prediction. Later on, the US release Jobless claim and PPI data at 12.30pm.