Market Report : 24.09.2024

Published: 24/09/2024 By ECAP

The British Pound was subdued through yesterday’s session, following the release of a mixed UK services PMI. While growth in the UK’s vital services sector proved more modest than expected, the index highlighted underlying strength in the sector. Ultimately, the overall reading still points to moderate growth levels in the UK which has kept GBP’s losses fairly minimal.

The Euro lost further ground yesterday after data showed that German business activity contracted in September at its sharpest pace in seven months, suggesting Europe's largest economy had tipped into recession. Ultimately, further signs of economic weakness could lift the chances of another rate cut by the ECB in October.

The U.S. Dollar has recovered to a degree from the selloff in the wake of the hefty Federal Reserve rate cut last week, with investors now appearing to write off the chance of a US recession. That said, investors are now pricing in 75-bps in rate cuts by the end of this year, and nearly 200-bps in cuts by December 2025.

Data supplied by GC Partners