Published: 13/12/2024 By ECAP
The British Pound faced challenges yesterday as a lack of UK economic data left the currency without support. This prompted investors to focus on growing concerns about the UK's economic outlook, resulting in losses for the Pound. Moreover, Sterling is encountering additional pressure today following the latest GDP figures, which showed the British economy contracted for a second month in October, intensifying fears among GBP investors.The Euro experienced volatility yesterday following the European Central Bank’s final interest rate decision of 2024. As anticipated, the ECB reduced rates by 25-basis points and indicated that further cuts are likely in the new year. However, the currency fluctuated significantly after the announcement, even strengthening against its weaker counterparts.
The U.S. Dollar strengthened yesterday following the release of the US producer price index for November, which surpassed expectations and indicated ongoing inflationary pressures in the US. This, along with Wednesday's rise in consumer price inflation, led markets to reduce their forecasts for Federal Reserve interest rate cuts. With limited significant US economic data today, the U.S. Dollar may primarily be influenced by market risk sentiment.
Data supplied by GC Partners