Published: 10/12/2024 By ECAP
The British Pound showed strength against major currencies over the past week but struggled to maintain upward momentum against the US Dollar, remaining in a consolidation phase. In fact, risk sentiment and upcoming US data, including inflation figures, are influencing the pair's movement. Ultimately, investors are cautious, awaiting potential market shifts.The Euro is awaiting the European Central Bank’s rate decision, with expectations for another 25-basis point cut, its fourth this year. Inflation in the Eurozone increased slightly in November but remains on track toward the ECB's 2% target. Despite improving economic data, rising tariff risks, political instability, and slowing business activity have weakened the Euro. Ultimately, the ECB faces a challenging environment with few reasons for optimism.
The U.S. Dollar edged lower, with the Dollar Index slipping amid uncertainty in the Middle East. Despite strong jobs data, expectations of a Federal Reserve rate cut have tempered the Dollar's rally. Ultimately, analysts note the Dollar’s upward momentum is slowing, but it continues to be supported by its status as a safe haven, especially due to ongoing geopolitical tensions.
Data supplied by GC Partners