Published: 11/09/2024 By ECAP
The British Pound ticked up against most of its peers yesterday after the release of the UK's latest labour data. In fact, the unemployment rate fell to 4.1% in July, down from 4.2%, boosting GBP exchange rates. Ultimately, the pound managed to stay above ground as markets remained confident that the BoE would hold its current interest rate in the coming week’s decision.The Euro is facing fresh headwinds this morning following the release of Germany’s finalised consumer price index for August. The data confirmed that inflation fell below the ECB’s 2% target. As inflation in the Eurozone's largest economy continues to slow, speculation around a potential ECB interest rate cut has intensified, just two days ahead of the central bank's upcoming decision, stymieing EUR exchange rates in the process.
The U.S. Dollar fell slightly in overnight trade, with losses in the greenback coming in the wake of a fiery presidential debate between Kamala Harris and Donald Trump. Moreover, the dollar was also on the backfoot ahead of key consumer price index inflation data due later in the day, which is widely expected to provide more cues on interest rates.
Data supplied by GC Partners