Wednesday 27/11/2024

John Hall • November 27, 2024

Daily Update 27/11/2024

Key Headline:

JPY Strengthens: Driven by increased speculation of a potential rate hike.
Month-End Activity Anticipated: Possible positioning adjustments ahead of the upcoming US holidays.

Yesterday Recap

JPY emerged as the strongest performer in yesterday’s trading, while GBP weakened across the G10. This came after BoE Chief Economist Huw Pill indicated that recent budget measures would have minimal effects on inflation and employment, prompting markets to extend expectations for a 75-bps rate-cut path into 2025.

Meanwhile, the Fed minutes released last night provided little new insight, reaffirming officials' preference for a gradual approach to rate cuts, leaving the USD unchanged.

Today’s Rates

Today's Interbank Rates at 09:51 am against GBP movement.

GBP>EUR – 1.1987

GBP>USD – 1.2602

EUR>GBP – 0.8342

EUR>USD – 1.0515

GBP>CAD – 1.7704

GBP>AUD – 1.9434

GBP>SEK – 13.797

GBP>AED – 4.6288

GBP>HKD – 9.8070

GBP>ZAR – 22.810

GBP>CHF – 1.1125

GBP>PLN – 5.1648

Today’s Key Takeaways

JPY Strengthens: Market expectations for a December rate hike drive early gains for the yen.
EUR Boosted: ECB's Isabel Schnabel warns against excessive rate cuts, supporting the euro.
Month-End Positioning: With Thanksgiving tomorrow, many US traders are treating today as the effective month-end.
Key US Data Focus: A weaker-than-expected core PCE figure today could prompt profit-taking on USD long positions, potentially lifting GBP/USD and EUR/USD.

27th November 2024

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