06/12/2024
Written by: Ian Morley
Summary:
GBP received a boost from Bank of England chief economist Huw Pill yesterday afternoon, following his remarks that services and wages continue to suggest inflation remains robust. This reduces the likelihood of an interest rate cut in August. GBPUSD traded at its 2024 highs once more ahead of today’s CPI figures, and GBPEUR also approached its 2024 peak.
Speeches:
Market Insight:
It was a favourable day for the GBP yesterday, with this morning’s GDP figures providing further support. May’s GDP rose by 0.4% compared to the expected 0.2%, indicating that overall Q2 GDP is on course to increase to 0.6%.
This afternoon, focus shifts to the US CPI numbers. A lower-than-expected result will exert additional pressure on the USD, which is already under strain. Should this occur, we anticipate GBPUSD to reach new 2024 highs. EURUSD is also expected to rise, though gains may be tempered by the uncertainty surrounding the French election.