Key Headlines:

·  Fed Chair Powell Signals Caution on Rate Cuts: Federal Reserve Chair Jerome Powell reiterated a cautious approach toward potential rate reductions, emphasizing the need for prudence in monetary policy.

·  GBP Pressured by Growth Worries: Concerns over economic growth weighed heavily on the British pound, contributing to its decline.
 

Yesterday Recap



During yesterday's European trading hours, the USD experienced a pullback despite an uptick in PPI figures and a dip in jobless claims. This allowed both GBP/USD and EUR/USD to rebound from earlier support levels.

Later in the day, however, the USD regained momentum as Federal Reserve Chair Powell highlighted the robust performance of the US economy and reiterated a cautious stance on potential rate cuts, tempering expectations for any near-term easing in monetary policy.

Today’s Rates

Today's Interbank Rates at 10:43 am against GBP movement.

GBP>EUR – 1.1991

GBP>USD – 1.2678

EUR>GBP – 0.8338

EUR>USD – 1.0573

GBP>CAD – 1.7805

GBP>AUD – 1.9594

GBP>SEK – 13.909

GBP>AED – 4.6556

GBP>HKD – 9.8710

GBP>ZAR – 23.048

GBP>CHF – 1.1254

GBP>PLN – 5.1824

Today’s Key Takeaways

· GBP Declines Following Disappointing Economic Data: The British pound has weakened this morning after GDP figures revealed a 0.1% contraction in September and a modest 0.1% growth for Q3, falling short of the 0.2% forecast.

·  USD Corrects Amid Market Repositioning: After a strong rally since October, the USD experienced a correction yesterday. However, with no significant negative developments in the US, the “Trump trade” momentum appears intact, suggesting potential for continued strength in the longer term.

· Hedging Opportunities for USD Buyers: Current USD softness could present an opportunity for clients looking to hedge against the risk of prolonged USD strength.

·  Key Event Today: US retail sales data is set to be released and will be closely watched for further market direction.

15^th November 2024

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