Magna Financial Market Report – November 15th 2024
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• Federal Reserve Chair Powell signals caution on rate cuts
• GBP under pressure due to growth concerns
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RECAP
During yesterday’s European trading session, the USD saw a correction, despite slightly higher PPI and lower jobless claims data. This movement led to both GBPUSD and EURUSD bouncing off key support levels.
As the evening progressed, however, the USD regained ground. Federal Reserve Chair Powell emphasized the strength of the US economy, once again dampening expectations for any imminent rate cuts in the Fed’s easing cycle.
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OUR SUMMARY
The GBP is lower this morning after disappointing GDP data showed a 0.1% contraction in September and a weaker-than-expected 0.1% growth in Q3, falling short of the 0.2% forecast.
The USD has been on a strong upward trend since October but experienced a correction yesterday as markets adjusted. However, with no significant negative news from the US, the “Trump trade” still appears to have momentum, suggesting that the USD could remain strong in the longer term. Clients looking to buy USD should consider using any weakness as an opportunity to hedge against the ongoing potential for this trend to persist.
All eyes are now on today’s US retail sales report, which could offer further guidance on the USD’s next move.
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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) 203 371 9200 or email osman@magnafinancial.com.
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