Published: 13/11/2024 By ECAP
The British Pound has regained momentum, although short-term consolidation seems likely. In fact, despite a rise in unemployment, the Bank of England is expected to continue focusing on high wages and inflation, which should support the Pound in the medium term. While some fluctuations are expected, the overall outlook for the Pound remains positive as the central bank stays focused on economic stability.The Euro has recently faced pressure due to political uncertainty in Germany, weak investor sentiment, and concerns about U.S. trade tariffs impacting Europe's economy. This has led to a decline in the Euro's value against all major currencies. Additionally, the European Central Bank is expected to implement more interest rate cuts, adding to the euro's challenges. As a result, the Euro’s outlook remains weak in the near term.
The U.S. Dollar remained near recent highs as investors awaited key U.S. inflation data, which could shape future interest rate decisions. The greenback strengthened on expectations of expansionary policies, though the focus shifted to the October CPI report. Comments from Fed officials, including Chair Jerome Powell, also influenced market expectations for potential rate cuts or pauses in December, adding further uncertainty to the outlook.
Data supplied by GC Partners