The message sent from Bank of England officials recently of dialling down its monetary policy (interest rate cuts) could well have been confirmed this morning. We saw UK inflation rise in the last month –overshooting expectations and the BoE target rate.
European Union is facing backlash after a struggling year in economic growth. Both European Central Bank President Christine Lagarde and ECB member and head of Bundesbank Joachim Nagel expressed their concerns for EU moving forward. With the European Union underperforming and falling behind other countries when it comes to generate new economic growth and manufacturing – the main areas to be affected and see less spending is welfare and defence.
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On Friday UK GDP numbers showed that growth in the UK had slowed down to just 0.1% by September, which has had an instant negative impact on Sterling exchange rates. What this release has shown is that the actions taken in the latest budget will now most definitely have an adverse effect on the UK economy.
This morning, we woke up and saw that UK’s economic growth showcased a slowdown in its third quarter. If we rewind back to the first half of 2024, with Q1 producing the strongest figures of 0.7% growth, followed by Q2 of 0.5%.
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Yesterday we saw US Inflation beat expectations to rise to 2.6% in October, leaving The Federal Reserve with a debate as to whether they cut interest rates in their last meeting before Trump's presidency begins, or whether they leave rates unchanged.
Market pressure on the Euro has continued over the last 48 hours as Trump looks increasingly set to implement an America First policy around trade tariffs, which is set to sting Europe particularly hard given that they are one of America's largest trading partners.
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