03/10/2024
Written by: Ian Morley
Summary:
Yesterday saw gains for the other safe haven currencies, CHF and JPY, while both European and US equities ended the day lower. Surprisingly, the USD weakened despite higher-than-expected PMI numbers. The UK’s composite PMIs exceeded expectations, indicating a robust economy, whereas eurozone PMIs highlighted sluggish performance.
As anticipated, the Bank of Canada reduced interest rates by 0.25% and hinted at further easing as inflation concerns diminish.
Speeches:
Market Insight:
Today’s focus is on the US, with the initial estimates of second-quarter growth expected. Markets anticipate an increase from 1.4% to 2%. Additionally, attention will be on the core PCE number for Q2, which will provide insight into tomorrow’s June figures and influence predictions regarding Fed rate cuts. This morning, markets remain in a ‘risk off’ stance, likely negatively affecting GBP. JPY continues to lead gains this week, with markets now pricing in an 87% chance of a BoJ rate hike next week.