Published: 24/10/2024 By ECAP
The British Pound fell against the Dollar, tipping into a fresh ten-week low as markets brace for an overall decline in UK PMI prints for October. Median market forecasts are expecting a slight downtick in UK activity numbers, with October’s Services PMI specifically expected to ease to 52.2 from 52.4 the previous month. Moreover, investors will be keeping an eye out for a slew of central banker appearances from the BoE.The Euro weakened further amid growing expectations that the European Central Bank may be more aggressive in rate cuts going forward given an uncertain growth outlook. Although the ECB has already cut rates three times this year from a record high, markets see policy easing at each of its upcoming meetings well into the new year.
The U.S. Dollar rose to its highest level since early August as reasonably healthy economic data has seen expectations for aggressive interest rate cuts from the Federal Reserve fade. Also helping support the greenback has been the growing expectations that Republican candidate Donald Trump will win the US Presidential election earlier next month, given his protectionist policies are seen boosting the US currency.
Data supplied by GC Partners