Published: 13/09/2024 By ECAP
The British Pound traded sideways following yesterday’s warning that UK debt may triple over the next 50 years. In fact, the Office for Budget Responsibility warned the UK’s debt pile could rise to 270% of GDP by the second half of the century. For now, UK data remains in short supply today, likely leaving the pound without a strong directional bias through the remainder of the session.The Euro was subdued yesterday as the European Central Bank delivered its second interest rate cut of the year. As the cut had already been priced in by markets, the resulting impact on the euro was fairly muted, despite the bank also downgrading its growth forecasts. Looking forward, today sees the publication of the latest Eurozone industrial production figures.
The greenback was set for mild weekly losses – its second week in red, as investors stuck to expectations of interest rate cuts despite some strong inflation readings this week. While the inflation readings initially saw bets shift towards a 25-basis point reduction by the Fed, soft labour market data put bets on a 50-bps reduction back in play.
Data supplied by GC Partners