The Pound picks up to a 4 week high against the Euro

The Pound is currently trading at its highest rate against the Euro of the last 4-weeks despite all the bad-news headlines of late.

The picture is not so rosy against the US Dollar where the Pound is still trading at its 33% trading line of the last month and some 6-cents shy of the 38-month high registered back in early June.

The US dollar continues to make gains off the back of the US Federal Reserve's preparations to start tightening US monetary policy by reducing its $120 billion of monthly government bond purchases and possibly start to raise US interest rates in 2022.

The bad-news headlines continue to dominate the UK agenda with fears over a possible return of “stagflation“ in the UK economy for the first time since the 1970's due to the recent spike in the UK inflation rate; slowing UK economic growth; rising tax levels and a disrupted supply chain.

Part of the disruption, specially in London and surrounding areas has come from the UK's eco-warriors. Can someone please point out to them that data shows that the UK is the leading G7 nation in cutting its CO2 emissions in the last 35-years and the top 25 CO2 polluting cities ion the world are all in China.

In the financial markets, the Pound remains supported against the Euro because the markets realise that most of these issues are global rather than unique to the UK and there are good news items if you care to look. After all Euro-zone inflation is currently running at a 13-year high and a 30-year high in Germany.

The National Grid confirmed earlier this week that a 450-mile subsea power cable linking the UK and Norway has started commercial operations allowing the two countries to share renewable energy resources.

Data this morning revealed that UK house prices rose in September by the most in nearly 15 years and the shortage of homes should underpin house prices well into 2022.

A good bit of political news for the Pound is the Scottish Supreme Court's ruling that the Nicola Sturgeon?government overstepped the constitutional mark twice which may yet force her to abandon plans for a second independence referendum.

The volatility in the global financial markets is not just limited to the currency markets.

US oil prices have soared to a 7-year high this week after OPEC+ resisted calls to increase crude supplies.

The commodity markets have seen European natural gas prices rise by over 700% since June 2020 despite Russia’s President Putin's statement that more gas would be sent to Europe this year to help accommodate soaring demand amidst ongoing supply constraints.?

This week's quote is from the American write William Arthur Ward "The pessimist complains about the wind. The optimist expects it to change. The realist adjusts the sails."

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