26/07/2024
Written by: Ian Morley
Summary:
Trading remained relatively quiet throughout European trading hours with no significant news or data points. Asian equities closed lower overnight, leading to increased demand for USD and causing GBPUSD and EURUSD to reach one-week lows.
Speeches:
Market Insight:
Today’s economic calendar is notably quiet, with the Riksbank’s (Swedish central bank) monetary policy meeting being the potential highlight. The bank is anticipated to reduce interest rates from 4% to 3.75%, showcasing the variance in rate expectations between Europe and the US. Such a cut could drive further demand for USD. Attention from clients is primarily focused on tomorrow’s Bank of England meeting and the expected voting split. The current anticipation is a 7-2 split, with members Dave Ramsden and Swati Dhingra leaning towards a cut. Downside risks for GBP could materialise if the Bank hints at a future rate cut in June or if more than two members advocate for a rate reduction.