Magna Financial Market Report – November 27th 2024
|
|
|
|
|
|
• JPY strengthens on rate hike expectations.
• Month-end positioning expected before US holidays.
|
|
|
RECAP
In yesterday’s trading session, the Japanese yen emerged as the biggest gainer, while the British pound experienced a broad decline across the G10 currencies. The drop in GBP came after BoE Chief Economist Huw Pill stated that last month’s budget measures would have only a minimal effect on inflation and
employment. This led markets to revise their expectations, now projecting a trajectory of 75 basis points in rate cuts extending into 2025.
Meanwhile, the release of the Fed’s minutes last night did not introduce any new information. The document reinforced the idea that U.S. Federal Reserve officials prefer a gradual approach to rate cuts, leaving the USD largely unchanged as a result.
|
|
|
|
|
|
|
|
|
|
OUR SUMMARY
The Japanese yen has begun the day on a strong footing, supported by heightened market expectations of a December rate hike. The euro is also showing strength after ECB member Isabel Schnabel warned against overzealous rate cuts, signaling the need for a cautious approach.
Although today isn’t officially the last trading day of the month, U.S. traders are likely to treat it as such, given that Thanksgiving is tomorrow. If today’s U.S. core PCE data comes in weaker than anticipated, it could prompt profit-taking on USD
long positions, potentially leading to gains in GBPUSD and EURUSD.
|
|
|
|
HOW WE CAN HELP
Our team of currency experts are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer specialised guidance on the best options available to you. Get in touch with Osman Hanif today on +44 (0) 20 3371 9200 or email osman@magnafinancial.com.
|
|
|
|
|
|
|
|
