Market Report : 10.09.2024

Published: 10/09/2024 By ECAP

The British Pound traded without any directional bias yesterday due to the continued absence of any UK economic data. This left Sterling exposed to the negative risk sentiment which prevailed through yesterday’s session. Kicking off today’s session was the publication of the UK’s latest jobs report. July’s figures reported another fall in unemployment, which appears to have offset a slowdown in wage growth over the same period.

The Euro lost a bit of ground yesterday as the single currency was undermined by its negative correlation with the U.S. Dollar. Moreover, EUR investors seem reluctant to make any aggressive bets as they brace for the ECB’s interest rate decision later in the week. In the meantime, confirmation that German inflation slowed sharply last month is likely to act as a headwind for the euro during today’s session.

The U.S. Dollar crept higher in anticipation of key inflation data that is likely to factor into the outlook for U.S. interest rates. In fact, Wednesday’s reading is expected to show inflation cooled further in August. The reading also comes just a week before a Federal Reserve meeting, where the central bank is widely expected to cut interest rates by 25-basis points.

Data supplied by GC Partners