| Powered by readers, open to all. | | | |  The pound is at risk of hitting its lowest level against the US dollar in 37 years, as a looming recession, rocketing inflation and political uncertainty hit the currency.
Last night, sterling sank to only $1.15 against the US dollar, making a weak start to September – after its worst month against the greenback since shortly after the Brexit referendum.
It is approaching the Covid crash low of just over $1.14 in March 2020, which was the worst level since 1985.
Predictions that Britain is falling into recession as storm clouds gather over the economy have hit demand for UK assets.
Warnings that Britain faces a "frankly terrifying" cost of living squeeze as inflation rises over 10%, weighed on the pound. Real wages are expected to hit their lowest level since 2003, wiping out 20 years of growth.
A weak currency will push up the cost of importing goods, adding to the pressures on UK businesses – on top of soaring energy bills, raw material costs and supply chain disruption.
The pound isn't alone in struggling against the US dollar. The greenback hit a 20-year high against a basket of currencies yesterday, after economic data suggested the US Federal Reserve would keep increasing interest rates into 2023.
The pound has also lost ground against the euro in recent weeks, with soaring eurozone inflation likely to prompt the European Central Bank to raise interest rates sharply.
Sterling is currently trading at about €1.158, compared with almost €1.20 at the start of August.
Europe's energy sector is going through an "exceptional crisis", the chief executive of France's leading gas importer Engie has warned.
"The world of energy as we have known it won't ever be the same again," Catherine MacGregor told RTL radio, explaining that curbs to Russian energy imports and the shift towards green energy were a "turning point".
Tensions between France and Russia escalated this week when Gazprom said it would cut supplies to Engie, in a row over contracts.
Investors are poised for the latest US jobs report, which could show a slowdown in hiring last month. The non-farm payroll is expected to have risen by about 300,000 in August, after 528,000 in July.
We will also hear how UK construction firms fared last month, and how fast factory gate prices are rising in the eurozone.
The agenda
• 9.30am BST: UK construction PMI report for August
• 10am BST: eurozone PPI measure of producer prices inflation
• 1.30pm BST: US non-farm payroll employment report for August
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Energy contracts reform can bring prices down – if the new PM is tough enough 
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