The Dollar has largely remained unmoved heading into today as focus remained on negotiations between The U.S & Iran. Recent media reports have suggested that indirect negotiations were ongoing, even after U.S military strikes hit targets in Southern Iran earlier this week. Aside from this, markets were keeping a close eye on Thursday’s Personal Consumption data, as well as preliminary GDP figures.
Elsewhere, UK Energy Bills are set to increase by £200 a year as the regulator Ofgem announced a 13% rise in the price cap. This is the highest it has been since January 2024 and is the first time that rising wholesale costs off the back of the Middle Eastern War have hit household bills. The concern moving forward is how much more the price cap can rise, and the possible impact on UK households as we move into the winter months later in the year. Especially when you consider that even if the conflict was to end today, the damage to infrastructure in The Middle East would still lead to longer disruption and further elevated prices.
The immediate impact on household bills will see an increase of roughly £15 – £18 per month, but the concern again will be how this multiplies in the winter months when energy usage increases, and the impact it will have on inflation as a whole.
GBP/EUR 1.1536 GBP/USD 1.3440 GBP/AED 4.9377
GBP/AUD 1.8834 GBP/CHF 1.0555 GBP/CAD 1.8583
GBP/NZD 2.2880 EUR/USD 1.1634 GBP/ZAR 21.9956