26/07/2024
Written by: Ian Morley
Summary:
GBP maintained some gains following the CPI report, though momentum was lacking, possibly due to speculation about a potential snap election on 4th July. During the peak of the day, GBPEUR approached the highs of 2024, and GBPUSD reached new two-month highs. Trading around USD was slightly more positive after the release of hawkish Fed minutes.
Speeches:
Market Insight:
The spotlight returns to the health of each economy with the release of May’s PMI figures. Additionally, Europe’s Q1 wage growth data will influence market predictions regarding the ECB’s future rate hikes or cuts for the year. A key concern for many clients is the impact of the general election on GBP. Currently, the market impact has been minimal, with FX focus remaining on central banks’ interest rate policies. Polls suggest a Labour victory, but the potential for a hung parliament could introduce volatility to GBP. For now, GBP is bolstered by market expectations of fewer rate cuts this year.