Pound steadies ahead of PM appointment

The pound Sterling steadied on Friday in advance of the upcoming Prime Minister appointment next week.

The currency took a sharp drop earlier in the week on the back of a report from the Resolution Foundation, which revealed the UK was facing its largest drop in living standards in a century.

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The pound fell to its weakest level since the country kicked off Brexit in 2016 following the devastating report.

According to Reuters, some analysts worried the pound could flirt with its lowest record level of approximately $1.05, which it hit in 1985.

Liz Truss currently stands as the front runner in the Prime Ministerial race, anticipated to beat former chancellor Rishi Sunak for the position.

Truss has been called on to bring billions of pounds in urgent support to UK households, in the form of raising benefits in line with inflation and imposing a more reasonable energy price cap to assist families with budget-devouring energy bills set to hit the population in October with an 80% price cap rise to over £3,000 per year on average.

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The favourite for leadership has instead tried to push the appeal of tax cuts, however Truss didn’t explain how she intended to fund urgent public services as the country heads into a difficult winter for social services and the struggling NHS.

The pound is currently also contesting with a strong Dollar, as the US Fed looks set to raise interest rates higher following Fed Chair Jerome Powell’s hawkish stance at the Jackson Hole convention in late August, along with expected strong data from the US Nonfarm Payrolls report today, boosting incentive for more aggressive rate hikes in the realm of 0.5%-0.75%.

One pound equated to 1.1564 Dollars and 1.1565 Euros in late morning trading on Friday.

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