Published: 31/10/2024 By ECAP
The British Pound ended yesterday’s trading session in the red after Chancellor Rachel Reeves presented the highly anticipated Autumn Budget. Although pre-budget optimism had bolstered Sterling's strength, the Pound experienced a 'buy the rumor, sell the news' reaction as many investors looked to capitalize on its recent upward trend. Nonetheless, the losses were partially mitigated by the Government’s increased borrowing, which could potentially drive inflation.The Euro edged higher yesterday, helped by stronger than expected German third-quarter growth data. In fact, Germany's gross domestic product unexpectedly grew by 0.2% in the third quarter compared with the previous three-month period. A considerable improvement from the 0.1% quarter-on-quarter decrease expected. Looking ahead, the Eurozone’s preliminary consumer price index will be today’s focus for EUR investors.
The U.S. Dollar retreated from its recent highs yesterday, pausing its rally ahead of the release of key macroeconomic data that could alter expectations for future Fed rate cuts. However, the advance release of third-quarter GDP is also due later in the session and is expected to show continued solid growth in the largest economy in the world. This, in turn, could help support the greenback against it's peers.