The FX markets seem to have taken a positive view on the Chancellor of the Exchequer's Summer Statement. The FX markets are notorious for their unpredictability and short-lived reactions to significant fiscal and monetary policy announcements. Also, the pound's increased strength against the US dollar and the euro is not exactly what one might call "enormous" (in fact, the euro has gained ground since the announcement). However, the signs that the "market" welcomes (or at least does not immediately hate) the measures announced should be appreciated if it assists in the UK government's ability to continue to borrow cheaply at a time when it needs to do so.
British pound strengthens as Sunak sets out support measures Eva Szalay Sterling jumped higher against both the dollar and the euro after Chancellor Rishi Sunak outlined new measures to jump start the economy. The pound traded at $1.2559, up from $1.2540 before the start of the speech. The euro, meanwhile, weakened to £0.8985 from £0.8994.