Market Report : 19.11.2024

Published: 19/11/2024 By ECAP

The British Pound has eased from recent highs but remains bullish in the medium term, according to Bank of America and Goldman Sachs. Despite challenges like UK public finance concerns, GBP is expected to continue outperforming, supported by a favorable political backdrop and fiscal stimulus. Goldman Sachs forecasts further gains for the Pound as the UK is seen better positioned than many European peers to navigate trade uncertainties.

The Euro rose against the U.S. Dollar yesterday as markets eased off the Greenback. In fact, the Euro's outlook remains steady, driven by softer USD sentiment and profit-taking. However, European inflation remains sticky, and the ECB faces economic challenges, including slow productivity growth. Looking forward, investors await upcoming economic data, including European inflation and PMI figures, which will provide further insights into the Eurozone's economic health and the ECB's future actions.

The U.S. Dollar retreated from recent one-year highs yesterday, driven by persistent expectations that the Federal Reserve may cut interest rates in December. In fact, the dollar index fell by 0.1%, as investors priced in a 59.8% chance of a 25-basis-point rate cut. Despite this, the longer-term outlook for the Dollar remains uncertain, with markets focused on upcoming economic data and potential rate decisions.

Data supplied by GC Partners