Market Report : 11.12.2023

Published: 11/12/2023 By ECAP

The British Pound was relatively flat this morning as market participants await a slew of economic releases. In fact, this is an action-packed week regarding UK data, starting with tomorrow’s release of wage data. Wednesday sees the release of UK GDP figures for October, where the consensus sees a figure of 0.2% month-on-month in October. Last but not least, Thursday sees the Bank of England interest rate decision and guidance update.

The Euro registered losses for the second consecutive week but managed to stabilize in early European trade this morning. Looking forward, market anticipation suggests that the European Central Bank will maintain the interest rates at 4.5% in its upcoming monetary policy statement on Thursday. However, expectations point toward a commencement of interest rate cuts by the ECB in March 2024.

The greenback saw some strength on Friday after a stronger than expected nonfarm payrolls reading, which dented expectations for an early interest rate cut by the Fed. The central bank is set to keep interest rates steady at the conclusion of a two-day meeting on Wednesday. But its outlook on rates, especially in the light of recent labour market strength, will be in focus.  

Data supplied by GC Partners