Sterling unsurprisingly ends the week in the red
It has been yet another one of those weeks hasn't it?! No respite in the volatile fluctuations of Sterling and the ongoing political circus in the UK. GBP has lost all of its recent gains and trades at a 1-week low across the board, with its near-term future once again in doubt.
With Liz Truss apparently unable to deliver the mandate she was elected for, the UK looks for yet another Prime Minister. Political uncertainty is bad business for markets and more importantly here, the £. It will be a 'nervy' couple of weeks for Sterling, as we learn who the new PM is and what their mandate will be. It's unclear who the financial market favours at this point.
The Pound has lost more than 2% this week and as predicted earlier in the week, UK retail sales figures haven't helped. September's data shows sales crumbled and fell much worse than expected (-0.5% v -1.4%). It means more than 2-years worth of gains have effectively been wiped (since the closure of the economy in 2020), as consumers struggle with the cost of living and high inflation. GBP fell 0.5% once the data was announced and rightly so, as it was a big miss.
A depressing week then for £ sellers, as a £100,000-€ exchange has seen a loss of €2,250 compared to the start of the week..