Published: 08/07/2024 By ECAP
The British Pound gradually gained further ground on Friday, bolstered by a broad-market risk appetite and fuelled by reinvigorated rate cut hopes. Also on its side was the clear outcome from the UK General Election, which ushers in a period of relative UK political certainty. In fact, a political party’s outright majority win is considered favourable for its financial markets.The Euro starts the new week on a softer footing as France's election result was not a killer blow, and the single currency could yet extend a recent recovery. In fact, French elections showed that the leftist coalition won the greatest number of parliamentary seats. Moreover, President Emmanuel Macron’s party came second, and Marine Le Pen’s far right party came third.
The U.S. Dollar nursed steep losses, steadying near a one-month low against a basket of currencies, amid growing expectations of future interest rate cuts. In fact, markets are currently pricing in a 70.7% probability of a rate cut in September, up from 64.1% just a week earlier. Focus this week is on a two-day testimony by Federal Reserve Chair Jerome Powell, as well as key consumer price index inflation data.
Data supplied by GC Partners