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Rishi to the rescue again?

Lawrence Kaplin
Lawrence Kaplin 22 December 2021

GBP: £1b business support plan announced

EUR: Energy costs soar

USD: Biden hopeful



Sterling managed to recover some lost ground yesterday after the Government announced it has set out a £1b fund to help businesses worse affected by the rise in Covid cases and recent tightening of restrictions. Whilst news of the support was welcomed by markets, industry leaders from the hardest-hit travel and leisure and hospitality sectors immediately poured cold water over the £6k grant, saying the new support measures fall way short of what is required.

Sterling also got a further boost after the Government announced there will be no further tightening of Covid restrictions before Christmas but PM Johnson said an introduction of tougher curbs cannot be ruled out after December 25th. In other news, like her recently resigned predecessor, Liz Truss the new UK Brexit negotiator wasted no time in threatening the EU that she will trigger Article 16 of the Northern Ireland Protocol if “current issues” around trade between Great Britain and Northern Ireland aren’t resolved.



The euro fell yesterday as broader market sentiment improved helping to lift risk assets in general. Having recently attracted safe-haven flows in the face of a steep sell-off in global equities, the rebound in risk assets saw markets shun the negative-yielding euro in favour of more risky higher-yielding currencies. European energy prices hit yet another record high yesterday rising over 20% after news broke that Russia would continue to curtail exporting gas to the EU.



The dollar had a mixed trading session yesterday, initially weakening following the news that President’s $1.75t stimulus plan would not gain the required votes in Congress, but later rallying after Biden insisted the Bill was not “dead” and that talks with key Democrat Senator Manchin would continue. Ahead of tomorrow’s key inflation data, Q3 GDP data is scheduled to be released later today.

Market rates

Today's Interbank Rates at 07:44am against sterling movement vs yesterday.

Euro €1.175 ↑
US dollar $1.324 ↑
Australian dollar $1.855 ↓
South African rand R21.04 ↓
Japanese yen ¥151.2 ↑

Today’s is the last morning report of the year, although as usual, your dealer will of course keep you in touch with any market developments over the holiday period.

I would like to take this opportunity on behalf of everyone at Equals Money to wish you a very merry Christmas and a happy and healthy New Year.