Will the US join Israel's attack on Iran and if they do, what does it mean for financial markets?
Global stocks have been lower since Israel attacked Iran 6-days ago and they dropped further yesterday after President Trump's above message yesterday. Geopolitical uncertainty is bad business and as the Pound isn't a safe haven currency, it has fallen against the majors..
£-€ has fallen below 1.17 mid-market for the first time in 7-weeks. With plenty of UK data still due out, it could be another bad week for the pair.
Lloyds Bank are suggesting a near-term drop to the low 1.16's is now likely.
Pinning the Pound down further today was the outcome to the UK's inflation release. Headline inflation fell from 3.5% to 3.4%, but it was 2 other areas that caught the eye amongst economists who have subsequently raised the chances of an August interest rate cut.
Core inflation fell from 3.8% to 3.5% and services inflation fell from 5.4% to 4.7%. These were both surprising and 'chunky' drops, that won't change what the BoE do tomorrow, but it may by the time August comes.
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