Magna Financial Market Report – Wednesday 13th November 2024
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• GBP: Drops due to higher unemployment.
• USD: Strengthens with rising yields.
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RECAP
The GBP fell broadly yesterday, as markets reacted to concerns over persistent wage growth and a troubling rise in the unemployment rate for the three months to September. Meanwhile, the USD continued to strengthen, boosted by rising Treasury yields ahead of today’s CPI release. This led to GBP/USD reaching new lows, while EUR/USD dropped to fresh 2024 lows.
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OUR SUMMARY
The USD has been strengthened by expectations of inflationary pressure under the Trump administration, leading to unwinding of Fed rate cut bets. Today’s CPI data will be key in determining if the USD’s gains continue. For the GBP, the pound fell yesterday despite sticky wage growth, suggesting markets may be more focused on economic growth than rate cuts. With the market already long on GBP, this actor may be priced in. Attention now shifts to Friday’s GDP data
for further direction.
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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.
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