Market Report : 15.12.2023

Published: 15/12/2023 By ECAP

The British Pound rose against the Euro and Dollar yesterday after the Bank of England made it clear it was in no mood to entertain thoughts of interest rate cuts. In fact, Bank Rate was maintained at 5.25%, as expected, however, the Bank signalled it stands ready to raise interest rates again if needed.

The Euro gained some traction yesterday as investors reduced their bets on ECB rate cuts for 2024. In fact, ECB’s President Christine Lagarde said there were no discussions about easing monetary policy. She added that rates could stay at current levels at least for the first half of 2024, brushing aside cut speculations.

The U.S. Dollar languished at four-month lows as investors positioned for deeper than expected interest rate cuts by the Federal Reserve in 2024. In fact, the greenback seems set for its steepest weekly drop against major currencies since July – with the dollar index having lost 2% since the Fed’s most recent meeting on Wednesday.

Data supplied by GC Partners