Beyond Currency

"Having announced a series of measures to support those facing the threat of losing their jobs by supporting wages and continuing the reduction of VAT he is faced with another round of consideration of how it will all be paid for that will exercise his mind.

The cost of the new measures have not, as yet, been officially announced but by postponing the Budget which was due to be presented to Parliament in November he has bought a little breathing space and the opportunity to consider the Treasury’s options should the situation worsen.

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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.

"In a plan to save jobs anyone who works fewer than their normal weekly hours can qualify for a top up which will be paid for jointly by their employer and the Government.

Anyone who works 33% of their hours will receive 77% of their pay.with 55% paid by the employer and 22% by the Government.

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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.

"Rishi Sunak began by cancelling the Autumn Statement that was to be delivered in November. This is the announcement of spending plans and more importantly how they will be paid for in the coming year.

His decision to cancel this and speak today on new measures he is going to introduce to protect existing jobs rather than provide detail on how new ones will be created is an illustration of the gravity of the situation.

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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.

Johnson labelled the new measures vital as the hospitality industry will be hit hard again and this would appear to be the final chance before the announcement of another total lockdown. All pubs, bars and restaurants will now be forced to close at 10pm and anyone able to work from home should do so.

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.

"A press conference held by the two top scientists in the Government’s Scientists Advisory Group for Emergencies revealed that at the present rate of infections, England could be looking at 80k new cases a day by the middle of next month.

It is impossible to say what the effect of this will be on the country since a second total lockdown would drive the economy back into recession and this time it will take more than a few gimmicks to see a return to growth.

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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.

"The Government admitted that its Covid-19 testing system was at breaking point last week as the number of new infections rose exponentially.

With 20% of the country already suffering a more severe set of lockdown rules, Prime Minister Boris Johnson has some important decisions to make about how to deal with the growing threat of a second spike.

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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.

"Many commentators are looking for the Government to provide further support for the hospitality industry which is still seeing outlets closing in major cities as working from home becomes the norm. Also, Holiday companies and the entire aviation industry is in serious trouble and craving support with activity not expected to return to normal until late 2023 at the earliest.

The Bank of England’s Monetary Policy Committee meets later today and is set to hold fire on any further boost to the economy until Chancellor Rishi Sunak firms up his fiscal planning."

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.

"Chancellor of the Exchequer Rishi Sunak reacted to yesterday’s employment report by confirming that retention of existing jobs and schemes to create new ones is his top priority.

The data shows that the number of those claiming benefits rose by 73.4k and the unemployment rate ticked back above 4%.

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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.

Analysts believed that the collapse in growth over Q2 would be more than made up for by a major recovery in Q3. With just a few weeks of Q3 left, the outlook is, perhaps, not as rosy as had been expected.

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.

"The rise in Coronavirus cases which doubled within a week and the controversy over the Internal Market Bill which was introduced to Parliament last week have had a profound effect on confidence that the UK can grow back to its pre-Pandemic level in the short/medium term. Any optimism that had been built up as the country appeared to be returning to something approaching normal has almost entirely dissipated.

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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.