Published: 03/10/2024 By ECAP
The British Pound was on the back foot following this morning’s speech by BoE Governor Andrew Bailey. Bailey said that the BoE could become a “bit more aggressive” and “more activist” on rate reduction if there’s further progress on inflation. Meanwhile, in the absence of any notable UK economic data, movement in the Pound may be driven primarily by market sentiment. If investors remain cautious this could see Sterling come under pressure.The Euro managed to hold steady against the majority of its peers yesterday, marginally bolstered by the publication of the Eurozone’s latest unemployment rate. The bloc’s unemployment reading held steady at record lows in August, coming in in line with market expectations at 6.4%. Looking ahead, the primary catalyst of movement for the euro will likely be today’s publication of the Eurozone’s finalised services PMI for September.
The U.S. Dollar gained further ground yesterday, with the safe haven adding to the previous session’s sharp gains, as markets processed the increasing geopolitical risks in the Middle East and awaited further US economic data. Moreover, the greenback had also received a boost on Tuesday from a stronger than expected reading on U.S. job openings, especially ahead of Friday’s widely-watched monthly jobs report.
Data supplied by GC Partners