Sterling is well-bid against most majors overnight. Labour leader Keir Starmer has written a 12,000-word essay in which he dubbed the term the “contribution society”, emphasizing the values of hard work, and partnerships between the state and private sector. He eschewed references to socialism and promised to support business and maintain fiscal discipline in a 35-page essay setting out his political ethos. Chancellor, Rishi Sunak, is under growing Tory pressure to soften the impact of rising living costs, fearing voter backlash from rising costs for citizens, as food prices and energy prices rise and inflation approaches 4%. The UK reported 36,710 coronavirus cases on Thursday.
The euro is lower against most majors in early morning trade. Germany’s Social Democrats (SPD) have maintained a small but steady lead in polls over the past few weeks, and the party’s chancellor candidate, Olaf Scholz, has already stated his intention to form a coalition with the currently third-placed Greens. But given Germany’s fractured political landscape, the SPD and Greens would need a third partner to be able to form a coalition. The third party would look likely to be Christian Lindner, the leader of the pro-business Free Democratic Party (FDP) is likely to find himself as the kingmaker, playing a key role in coalition talks.
The dollar is lower against sterling and higher against the euro overnight. The US Special Representative to Haiti has resigned in protest at what he described as the Biden administration’s “inhumane, counterproductive” decision to deport thousands of Haitian migrants, fleeing the crisis-torn country into the Southern United States after the earthquake in August. The US arrested Mark Gyetvay, finance chief of Russian natural gas group, Novatek, charged with tax fraud connected to $93mn in offshore accounts. The Department of Justice alleged that Mr. Gyetvay allegedly schemed to defraud the US government by hiding ownership and control in substantial overseas assets.
Ballinger & Co. Morning Report–24th September 2021
GBP>EUR – 1.1687
GBP>USD – 1.3716
EUR>USD – 1.1736
GBP>CAD – 1.7385
GBP>AUD – 1.8838
GBP>SEK – 11.838
GBP>AED – 5.0371
GBP>HKD – 10.676
GBP>ZAR – 20.035
GBP>CHF – 1.2672
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