Published: 19/09/2024 By ECAP
Evenly BalancedThe British Pound gained some ground as the BoE is anticipated to leave the interest rate unchanged at today’s meeting as UK inflation remains above the central bank's 2% target. In fact, investors expect the BoE to delay a second rate cut until November. However, if the UK central bank surprises a rate cut, it might exert some selling pressure on the Pound.
The Euro came under pressure yesterday following the release of Eurozone inflation figures. August’s finalised figures confirmed inflation in the bloc cooled from 2.6% to a three-year low of 2.2%, reinforcing expectations of further easing from the European Central Bank. This comes alongside comments from ECB policymakers François Villeroy de Galhau, who indicated that the bank might continue easing its monetary policy in the near future.
The U.S. Dollar was relatively flat this morning after the Fed cut its benchmark rate by 50-basis points - the higher end of market expectations - to a range of 4.75% to 5%. Fed Chair Jerome Powell said that risks between higher inflation and more labour market weakness were now evenly balanced, and that the central bank was likely to cut rates further amid growing confidence that inflation will fall.
Data supplied by GC Partners