Published: 11/10/2024 By ECAP
The British Pound was relatively flat this morning following the early release of UK data. Upbeat monthly factory orders and an expected GDP growth have improved the UK economic outlook. Ultimately, financial market participants expect the BoE to cut interest rates only once in the remaining two policy meetings this year.The Euro firmed up this morning following the release of German inflation figures that showed an increase of 1.8% in consumer prices. Ultimately, German inflation data continues to support the bloc’s single currency while investors are digesting the ECB's cautious tone on economic growth. For now, markets continue to price in two consecutive rate cuts in October and December.
The U.S. Dollar fell over 1% in Asian trade, retreating from a one-month high hit overnight. While the Dollar initially rallied on a stronger than expected inflation reading for September, it tapered its gains after labour data showed a bigger than expected increase in weekly jobless claims. Ultimately, signs of weakness in the labour market are likely to push the Fed into reducing rates consistently in the medium-term, even as inflation remains relatively elevated.
Data supplied by GC Partners