03/10/2024
Written by: Ian Morley
Summary:
The USD strengthened across the G10 currencies yesterday, with both GBPUSD and EURUSD nearing two-week lows. This movement was influenced by deteriorating risk sentiment following disappointing earnings reports from Tesla and Alphabet. In the US political arena, Kamala Harris is now leading Donald Trump 44% to 42%, according to a Reuters/Ipsos poll.
Speeches:
Market Insight:
Volatility may arise today with the release of preliminary estimates for July PMI activity. According to the expected figures, markets anticipate an increase in activity in the UK compared to the EU and the US. If this proves accurate, the GBP could appreciate as markets might reassess the likelihood of a rate cut next week.
The Bank of Canada is expected to reduce interest rates by 0.25% as inflation continues to decline and the job market shows signs of weakening. GBPCAD is trading near three-year highs due to differing interest rate policies, and further hints at additional cuts could see GBPCAD rise further.