Magna Financial Market Report – Wednesday 23rd October 2024
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- ECB hints at faster cuts.
- USD rises on higher treasury yields.
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RECAP
Yesterday saw little movement in GBP as Governor Bailey remained silent during his afternoon appearance, leaving markets without fresh direction.
Meanwhile, ECB policymakers hinted at a possible acceleration in rate cuts if data continues to show faster-than-anticipated disinflation, which led to increased market speculation on future cuts.
In contrast, USD steadily advanced throughout the day, supported by rising treasury yields that helped maintain its upward momentum.
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OUR SUMMARY
This morning, EURUSD hit its lowest level since August 1st, with markets pricing in a 40% chance of a 0.50% ECB rate cut in December. On the other hand, GBPEUR remains close to its highest point of 2024.
GBPCAD continues to hover near its impressive 2018 peaks as traders await the Bank of Canada’s anticipated rate cut today.
The day is expected to stay calm until this evening’s Fed Beige Book release, which may offer clues on the Fed’s stance regarding growth and employment, likely impacting its future easing cycle. Later tonight, Governor Bailey is set to deliver remarks, following his silence yesterday.
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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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