Published: 29/10/2024 By ECAP
The British Pound has been relatively subdued by the anticipation of tomorrow’s looming Autmn Budget. While fears of a mini-budget style meltdown have dissipated, there is still some uncertainty ahead of the announcement. The Labour government has warned of a ‘painful’ budget, with ‘difficult decisions’ being made. Ultimately, analysts expect the budget to have a significant impact on the British Pound.The Euro is on course for a monthly loss of around 3%, amid concerns about the weak regional growth outlook. Although the ECB has already cut rates three times this year, expectations are growing that the central bank will consider a larger reduction at its next meeting. These expectations could grow if annual eurozone inflation, due on Thursday, is confirmed once more below the ECB’s 2.0% target.
The U.S. Dollar steadied throughout yesterday’s trading session, on course for a hefty monthly gain against other G10 currencies. In fact, the Dollar shot up to three-month highs in recent weeks amid increasing speculation over a Trump victory, which is expected to result in more inflationary policies over the coming months.
Data supplied by GC Partners