09/09/2024
Written by: Ian Morley
Summary:
The US Dollar continued to decline throughout yesterday’s trading session, as positive market sentiment persisted ahead of Friday’s Jackson Hole symposium. The likelihood of a 0.50% interest rate cut in September has now dropped to just 10%, pushing GBPUSD near July’s highs, while EURUSD reached its highest level since late December 2023.
Outlook:
The final CPI figures from the EU are the only significant item on the agenda, and these are unlikely to cause substantial market fluctuations. Therefore, we anticipate that risk sentiment will remain the primary driver of foreign exchange movements until the end of the week when the Jackson Hole meeting takes place. The US Dollar continues to trade relatively weak, with the index hovering near this year’s lows as markets have revised down the expected number of rate cuts for the year.