Published: 30/11/2023 By ECAPThe British Pound continues to make its way, having rallied through November, helped by unmistakable signals from the BoE that UK interest rates won't be cut anytime soon. In fact, the British Pound has risen almost 5% against the US dollar in November, its biggest monthly rise since November last year.
The Euro struggled to holds its ground following weaker than expected German and Spanish inflation data. In fact, this is the lowest point of inflation since April 2021, with figures nearly at target after having declined from a record high of 11.6% YoY in October 2022. Looking forward, investors now await the Italian, French, and Eurozone inflation data due later in the session for further cues.
The U.S. Dollar moved little in over-night trade after recovering slightly from its lowest levels since mid-August. However, the greenback was still set to mark a loss off 3.6% in November – its worst month in a year. Ultimately, softening U.S. inflation and signs of a cooling labour market drove steep losses in the dollar through-out the past month, amid growing conviction that the Fed was done hiking rates.
Data supplied by GC Partners