Published: 01/11/2024 By ECAP
The British Pound traded in mixed fashion this morning after a significant drop yesterday. However, investors are reassessing possible interest rate cuts from the Bank of England, which may lower rates by 25 basis points to 4.75% in upcoming November or December meetings. In fact, speculation around these cuts has lessened following the UK Chancellor's announcement of a £40 billion tax increase to boost public spending and investment.The Euro fluctuated against most currencies yesterday following the release of the Eurozone’s latest consumer price index. October’s data showed both headline and core inflation exceeding expectations, with headline inflation rising from 1.7% to 2% and core inflation steady at 2.7%. This persistent inflation dampened bets on European Central Bank interest rate cuts, providing modest support for the euro amid cautious trading.
The U.S. Dollar is struggling to gain more strength due to mixed economic signals. In October, private payrolls rose sharply, but job openings in September dropped to their lowest level since January 2021. Additionally, the US economy grew at an annual rate of 2.8% in the third quarter, which is slightly below the 3% that economists expected.
Data supplied by GC Partners