Published: 16/01/2024 By ECAPThe British Pound fell this morning after data showed that growth in British wages slowed in the three months through November. This supports the idea that the Bank of England will cut interest rates sharply this year. Ultimately, investors see a roughly 93% chance of the first move lower coming in May.
The Euro was relatively flat following the release of this morning’s latest data from the German statistics office Destatis. The nation’s Harmonized Index of Consumer Prices came in at 3.8%, in line with the market expectation of 3.8%. Later this week, the Harmonized Index of Consumer Prices from the Euro area and ECB Monetary Policy Meeting Accounts will be released and closely watched.
The U.S. Dollar gained some ground as investors await more cues on when the Federal Reserve could begin cutting interest rates. Looking forward, tomorrow’s U.S. retail sales and industrial production readings are set to offer more cues on the world’s largest economy, with any signs of cooling lending more credence to bets on early interest rate cuts.
Data supplied by GC Partners