9/7/20 Currency –
Sterling up after Chancellor’s spending pledge
The main event yesterday was charming Chancellor Rishi Sunak’s announcement of a £30bn support package for the economy featuring a number of initiatives.
Although the package was slightly larger than expected markets had already priced in a substantial stimulus and so the Pound failed to make further headway, especially with underlying fears over budget deficit trends.
Sterling held at 3-week highs above 1.2600 against a weak Dollar in Europe and the Euro is hovering close to 1.1111.