30th March 2022 - Bailey turns bearish on economy

"It is tough to find any good news for the UK economy as the country leaves the Pandemic behind and begins the work of recovery. Workers are facing what the Bank of England Governor has called a historic shock to incomes. The UK economy is primarily led by consumption. Consumers going out and making purchases keeps the country ticking over, so anything that creates stress for that sector quickly permeates through to the rest. There is little doubt that Andrew Bailey is right in describing current conditions as historic. The country had barely been able to complete its withdrawal from the European Union before the Pandemic hit, and now it faces an energy crisis not originally due to the conflict in Ukraine, but certainly exacerbated by it. It is hard to imagine a scenario where an invading nation is so roundly condemned, yet the nations closest to the conflict are forced by circumstance to continue to trade with it. The fact that Russia had managed to skilfully make itself invaluable in supplying energy primarily to Europe had clearly been factored into President Putin’s plans as he considered the fallout from his actions. " Beyond Currency Market Commentary: Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.