"The pound has been hit by a perfect storm of negative drivers over the past few days that has seen it plummet against both the dollar and Euro.

The market’s confidence in the UK’s recovery has been shattered by the crisis that has seen wholesale gas prices continue to rise, causing the collapse of several providers. In addition, a continuing shortage of HGV drivers has led to scenes not seen for many years of drivers queuing to fill their tanks with fuel.

Traders are concerned that the UK’s recovery from the Pandemic will be blown off course by these new issues, especially since the wider shortage of raw materials and spare parts is still unresolved.

The pound has been hit by a perfect storm of negative drivers over the past few days that has seen it plummet against both the dollar and Euro.

Bank of England Governor Andrew Bailey is sticking to his mantra concerning inflation. Bailey believes that the rise in inflation in the UK is temporary, although he did acknowledge that the timing of GDP returning to pre-Pandemic levels has been pushed back by a month or two.

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Beyond Currency Market Commentary:

Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.