Published: 27/11/2024 By ECAP
The British Pound slipped against the Euro yesterday following US President Trump’s proposed tariffs on Canada and Mexico. Despite the Pound appreciating against the Canadian Dollar and US Dollar, it weakened against the Euro as market sentiment was dampened by concerns over the UK economy, following weak PMI data. Ultimately, the lack of significant UK data leaves the Pound vulnerable to global market trends.The Euro has been struggling amid growing concerns about the Eurozone's economic outlook. In fact, markets have fully priced in a 25-basis-point rate cut by the European Central Bank in December, with a 58% chance of a larger 50-basis point cut. Moreover, the renewed trade tariff threats from US President-elect Trump also weigh on market sentiment, adding downward pressure on the Euro. Ultimately, investors are focusing on upcoming Eurozone inflation data for further clues.
The U.S. Dollar retreated slightly amid concerns over President Trump’s vow to impose tariffs on Chinese, Mexican, and Canadian goods. In fact, the Dollar Index dipped after a prior gain, as focus turned to upcoming US economic data, including the PCE price index and revised GDP figures. Investors are awaiting signals on the Fed’s rate outlook, with doubts rising over the necessity of further rate cuts due to signs of resilience in the US economy.
Data supplied by GC Partners