09/09/2024
Written by: Ian Morley
Summary:
The USD recouped some of the previous day’s losses as market expectations for a 0.50% rate cut in September diminished. The probability of such a cut has decreased to 56% from 80%. US equities closed higher, reflecting market stability. Conversely, the GBP continued to decline throughout the day, with GBPUSD reaching one-month lows.
Market Insight:
This morning, risk sentiment remains buoyant after the Bank of Japan’s Deputy Governor, Shinichi Uchida, tempered expectations of further rate hikes if financial markets remain unstable. As a result, the JPY has weakened, with GBPJPY up by 1.5% and the USD showing slight gains across the board. In the absence of major data releases, broader risk sentiment will likely guide the markets today.