The pound is on track for its longest losing stretch in nearly a year as jitters about a US recession returned to financial markets. Even after paring losses in a late uptick, sterling has fallen nearly 0.5pc so far this week to below $1.
2750, putting it on course for a fourth consecutive weekly decline, its worst run since September. The Bank of England’s knife-edge decision to cut interest rates for the first time in four years last week dented the pound. But since then, concern about a hard landing for the US economy, among other factors, has triggered a sell-off in global stocks and currencies, sweeping sterling lower along with other markets worldwide.
It comes as the FTSE 100 has dropped as much as 1.2pc today, with major European markets also about 1pc lower, as Wall Street ramps up predictions of the US plunging into recession over the next year. JP Morgan raised its chances of a recession in the world’s largest economy this year from 25pc to 35pc - and predicts there is a 45pc chance it will happen by the second half of 2025.
However, data today showed the number of Americans on unemployment benefits declined at its fastest pace in nearly a year in the week to August 3, calming some nerves about a US downturn. The S&P 500 on Wall Street has gained 1.9pc while the FTSE 100 has reduced losses to 0.
27pc. 06:12 PM BST Signing off That is all for today - we will be back again in the morning. Thanks for reading, and have a good evening.
05:10 PM BST Gas prices jump to .