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Thursday, September 29, 2022

Euro and pound fall after weak US business activity data and UK mini budget

by Joyce Alves and Gertrude Chavez-Dreyfus

London,nuevaNew YorkSeptember 23 – The euro and sterling fell to 20-year lows and 37-year lows, respectively, against the rising dollar on Friday after a slowdown in trade activity in the euro area and the United Kingdom deepened this month. The economy will probably enter a recession.

* Weighing in on the pound was the announcement of tax cuts and support measures for households and businesses by the new British finance minister, Quasi Quarteng, while the UK Debt Office outlined its plan to release an additional 72 billion pounds ($79.74 billion) for Prepared. To fund the financial year incentives.

* Sterling fell 1.9% to $1.1049, on track for its worst weekly slump against the greenback in two years, after hitting a 37-year low of $1.1022. UK bond yields posted their biggest daily increase in decades.

“The UK budget proposals do not reflect the need and reality of the British economy, which requires companies to pay more to the government to generate more revenue,” said Monex’s Juan Perez. America a Washington.

* “Most of the UK growth could come from higher borrowings during times of deep bearish pressure and the market is reacting sharply,” he said.

* Before, figures of PMI UK data shows the slowdown in the UK economy deepened this month as businesses grapple with rising costs and weak demand.

* In line with the pound, the euro fell 0.9% to $0.9755, hitting a low of $0.9726 since October 2002. Europe’s common currency was on track for its biggest weekly percentage decline since March.

* The accident was caused, in part, by data PMI in the euro area, which continued to fall in September. Europe’s largest economy was hit by rising energy prices and companies saw new business slump, deepening a slowdown in German business activity.

* The yen was down 0.5% at 143.14 per dollar, but was likely headed for its first weekly gain in more than a month, when Japanese officials intervened in the markets on Thursday to support the currency . For the first time since 1998.

* The dollar index, which compares the greenback to a basket of six major currencies, rose 1% to 112.38 units after rising to 112.44, its highest level since May 2002, touched earlier in the week and the highest in two decades on track. crossed over. To kick off your best week since March 2020.

World Nation News Desk
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