US Economy Surges Ahead

By Lauren Buckner

We begin another week of trading amid a fresh surge in the value of the USD following strong jobs data from the US on Friday afternoon. The key non-farms payroll release showed that 263,000 additional jobs were created in the States through September, a higher number than expected, and that the US economy continues to perform well. Investor appetite for the USD again increased following the release and the Pound dipped back towards 1.10.

The euro however, showed more resilience once again highlighting how fragile the Pound is at present as the move versus the USD here was more muted. The euro held its value despite renewed concerns around the German economy’s current bill of health as industrial output was reported to have fallen 0.8pc in August, a figure worse than expected.

Following recent poor data for Germany it is feared that the powerhouse of the EU economy is heading towards recession as current global inflation levels continue to strangle the economy. Retail sales figures recently showed decline as consumers cut back costs in the face of a 306% year-on-year increase in the cost of energy following Russia’s invasion on Ukraine and the subsequent disruptions to European energy supply. Despite these concerns the Euro still ended last week up against the Pound as pressures on the UK economy and government spending plans continue to undermine the value of sterling.

Chancellor Kwasi Kwarteng heads off to Washington today to join the International Monetary Fund’s (IMF) meeting only two weeks after their public condemnation of his mini-budget. Undoubtedly the IMF’s focus will be on how the global economy recovers from a succession of shocks from Covid, Russia’s war and rampant inflation but Kwasi is likely to experience a cool welcome following critique of UK spending and tax plans. International condemnation of the Government’s plans reiterated concerns from both the Bank of England and the Office for Budget Responsibility over the approach of high borrowing and low tax proposed by Liz Truss’s newly formed government. This deep rooted concern clearly continues to keep the Pound on the back foot and recent high levels of volatility could continue, please do make contact with us today to discuss the options available to protect your costs on any upcoming transfers.

Data this week;

IMF Meeting Mon-Fri


UK like for like retail sales


UK claimant count

UK unemployment rate

UK average earnings

US Monthly budget statement



UK Manufacturing productions

US Producer Price Index


US consumer price Index

US Jobless Claims


US Michigan sentiment survey