Latest market news:
- The pound to euro rate has climbed to a two-week high as the euro weakened following the resignation of French Prime Minister Sébastien Lecornu. He is the fourth PM to step down in the past 12 months, adding to political instability in the region.
- Last week’s market activity was relatively subdued due to the US government shutdown delaying key economic data releases. For context, there have been two shutdowns in the past 15 years, one lasting just over two weeks, the other just over a month, so investors will be watching closely for signs of how long this one might persist.
- This week, attention turns to central bank commentary, with appearances lined up from members of the Federal Reserve, European Central Bank, and Bank of England. Markets are currently pricing in over 1% worth of rate cuts from the Fed over the next 12 months, notably more than expected from its European and UK counterparts.
- Meanwhile, the Conservative Party’s annual conference is underway, following Labour’s gathering last week. With the Prime Minister and Chancellor already hinting at potential tax rises ahead of next month’s budget, the focus now shifts to how the Conservatives choose to respond.
- The pound has struggled to gain ground against the euro over the past couple of weeks, weighed down by weaker-than-expected UK economic data. Market caution is also rising ahead of next month’s Budget, with investors concerned about potential tax hikes and spending cuts. After hitting recent lows, the pound to euro spike at the start of this week means that £200,000 would now return €1,700 more than it did at last week’s lowest point.
If you’re planning to send money abroad and want to understand more about how news from around the world could impact your budget, contact Lumon on +44 (0)204 506 5672 for a free, no-obligation conversation and discover what options you have available to help.
