13/03/2026
The USD continued to gain ground on Friday amid a stock sell-off, fuelled by diminishing expectations of Fed rate cuts and a surge in risk aversion before the weekend.
The US dollar maintained its strength despite slightly lower-than-expected PPI numbers, pushing both GBPUSD and EURUSD to new lows for 2024.
Yesterday’s higher-than-anticipated CPI figure in the US led to a surge in US 10-year treasury yields to 4.5%, pushing GBPUSD and EURUSD towards their lowest points of the year.
Currency markets experienced another session of limited movement yesterday ahead of today’s significant US Inflation data release and the minutes from the recent FOMC meeting.
Yesterday, FX markets were primarily influenced by risk sentiment, resulting in GBPUSD and EURUSD making gains despite an increase in treasury yields, which typically strengthens the USD.
Expectations for a June interest rate cut by the Federal Reserve diminished following a robust jobs report revealing the addition of 303,000 jobs in March, surpassing the anticipated 214,000.