Published: 27/09/2024 By ECAP
The British Pound managed to firm against its safer rivals yesterday as a return to positive trading conditions saw GBP catch bids on the back of its increasingly risk-sensitive nature. However, capping any further Sterling gains was the publication of the UK’s latest consumer sentiment index from the British Retail Consortium. This has seen the pound fail to drift any higher and remain muted against its other risk-sensitive peers.The Euro faced fresh headwinds against the majority of its peers yesterday despite the publication of better than expected economic data from within the Eurozone’s largest economy. In fact, the data had little impact on the single currency, as the marginal uptick has been seen as more of a ‘a stabilization at a low level’, which has undermined the common currency instead.
The U.S. Dollar has weakened against most major currencies in the wake of the Federal Reserve’s dovish shift, and further falls lie ahead, according to Capital Economics, with a Trump win being the potential wild card. In fact, this narrative overshadowed yesterday’s better than expected US macro data and held back investors from placing fresh bets on the U.S. Dollar.
Data supplied by GC Partners