Published: 06/12/2023 By ECAPThe British Pound was on the back foot yesterday as market participants raised bets on an earlier start to interest rate cuts by the BoE. In fact, financial markets are now almost fully priced in a first BoE rate cut by June 2024. Looking forward, the BoE will release its monthly Financial Stability Report today, providing investors with insight into how far the BoE is going towards a hawkish or dovish stance.
The Euro lost further ground yesterday following the upbeat Eurozone PMI data for November which failed to inspire the bloc’s single currency amid the persistently weak demand in the Eurozone. In fact, major eurozone economies experienced a decline in business activity, with France, Germany, and Italy leading the way.
The U.S. Dollar wobbled yesterday as weak U.S. labour data spurred continued bets on early interest rate cuts by the Federal Reserve. In fact, JOLTs data showed U.S. job openings declined in October, pushing up hopes for a prolonged cooling in the labour market which could limit the space the Fed has to keep rates higher for longer.
Data supplied by GC Partners