Published: 02/10/2024 By ECAP
The British Pound is struggling to attract support this morning as anxious investors shun the increasingly risk-sensitive UK currency. In fact, market risk appetite has shifted amid growing concerns about the escalating conflict in the Middle East. Looking forward, the economic calendar remains relatively free and clear as market participants are forced to wait until the Bank of England’s Monetary Policy Report Hearings, due tomorrow.The Euro lost further ground yesterday as inflation in the Eurozone eased in September, falling below the European Central Bank's target. In fact, the Harmonized Index of Consumer Prices fell to 1.8%, down from 2.2% in August. This marks the lowest rate since April 2021. Looking forward, investors await the upcoming unemployment rate for the European Union, as well as speeches from members of the ECB.
The U.S. Dollar continued to retrace its recent losses yesterday as Federal Reserve Chair Jerome Powell played down the likelihood of another outsized interest rate cut. Looking forward, market participants await the widely watched monthly jobs report due on Friday. Weaker than expected data could revive fears over the prospect of a recession, while unexpectedly strong jobs growth may stir worries that the Fed will not cut rates as deeply as expected.
Data supplied by GC Partners