Published: 15/10/2024 By ECAP
The British Pound seems to be losing momentum as shifting interest rate expectations and UK budget uncertainty weighed on the currency. Moreover, a data packed week could see the Pound shed further ground. The first major release is the UK’s August labour market report, due later today. Secondly, markets will brace for tomorrow's UK inflation data, and lastly, Friday’s highlight will be the release of UK retail sales figures.The Euro drifted lower ahead of Thursday’s policy-setting meeting by the European Central Bank, which is expected to result in another cut of 25-basis points. Moreover, Eurozone business activity unexpectedly contracted in September, while inflation dropped below the ECB's 2% target. This data suggests that the eurozone economy is in worse shape than when the policymakers last met.
The U.S. Dollar steadied at an over two-month high amid persistent bets that the Federal Reserve will cut interest rates at a slower pace. In fact, comments from Fed officials furthered this notion, especially as recent data showed resilience in U.S. inflation and the labour market. Ultimately, investors were seen positioning for a smaller rate cut in November.
Data supplied by GC Partners