GBP
Today, The UK ministers will meet major energy firms amid a deepening energy crisis.
Chancellor Nadhim Zahawi and Business Secretary Kwasi Kwarteng will press gas and electricity company executives for solutions to the predicted spike in bills over winter.
The Bank of England expects a longer-lasting recession from the end of the year.
Rising energy costs are a key reason for the BoE’s significant upward revision of its inflation forecast. The BoE expects to get inflation back under control. However, everything depends on how the energy crisis in Europe develops.
USD
The key focus for markets yesterday was the US CPI inflation report for July. The data produced some surprises and generated a reaction across a number of markets.
The US inflation news coincided with some Dollar weakness. The greenback fell by over 1% in the immediate aftermath of the data release. However, it has recovered some ground overnight.
EUR
Nine Russian warplanes were destroyed in a deadly string of explosions at an air base in Crimea that appeared to be the result of a Ukrainian attack.
The destruction of Russian military aircraft in such numbers would represent a significant escalation in the war.
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