Published: 22/10/2024 By ECAP
The British Pound held its ground against its peers but seemingly traded sideways at the start of this week’s session, as GBP investors grew increasingly wary of the UK’s upcoming Autumn Budget. In fact, markets are particularly concerned by reports that Chancellor Rachel Reeves will unveil several tax hikes on the 30th of October.The Euro slid against its peers after yesterday’s data evidenced that German producer prices fell more than expected in September, declining 1.4% year on year, instead of the 1.0% anticipated. Looking forward, EUR investors will look to a speech by European Central Bank President Christine Lagarde for fresh impetus today. If she strikes a broadly dovish tone, the single currency could lose further ground.
The U.S. Dollar edged higher during yesterday’s trading session, retaining recent strength as the US presidential election draws near and polls point to a rising likelihood of former President Donald Trump prevailing. In fact, Trump’s proposed tariff and tax policies are seen as likely to keep U.S. interest rates high while undermining currencies of trading partners.
Data supplied by GC Partners