Published: 20/09/2024 By ECAP
Gradual PaceThe British Pound rallied yesterday as the Bank of England's monetary policy committee left rates unchanged at 5.0%, stating that the pace of future cuts is likely to be gradual. On that note, markets are expecting two more rate cuts from the BoE by the end of the year, but some economists say just one.
The Euro was subdued yesterday, as a lack of impactful Eurozone data left the single currency struggling to attract bids. In addition, a broadly upbeat market mood saw the safer euro soften against its riskier rivals. Looking forward, investors will focus on ECB President Christine Lagarde’s speech later today.
The U.S. Dollar fell slightly in early morning trade, extending overnight declines as markets looked to lower U.S. interest rates. In fact, the Fed cut rates by 50-basis points and announced the start of an easing cycle, which could see rates fall by as much as 125-basis points by the year-end.
Data supplied by GC Partners