The IMF in a report published yesterday commented that it believes that the ongoing cost of living crisis will hit the UK harder than other major economies, and it will be the only country that ends the year with a smaller economy than it started with.

The cautious optimism that was seen over the past couple of weeks has evaporated. The IMF expects the economy to contract by 0.6% this year rather than grow very slightly.

Although these are not the words Jeremy Hunt wanted to hear, the Fund did also comment that following the Autumn Statement that the country is now on the right track to recover next year.

The Chancellor's response to the report was to say that the UK had outperformed several forecasts made last year, and he remains optimistic.

The economy is not helped by the level of industrial action that is affecting the public sector. Yesterday, firefighters voted overwhelmingly in favour of strike action, while tomorrow sees the largest action for decades, with teachers and civil servants joining nurses and ambulance crews on strike.

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.