06/12/2024
Written by: Ian Morley
Summary:
Currency markets are trading within a narrow range ahead of crucial US inflation data on Friday and the forthcoming elections in France and the UK. Data on US consumer confidence released yesterday indicates that American consumers remain optimistic, supporting the Federal Reserve’s stance on maintaining higher interest rates for an extended period. Inflation figures from Canada and Australia exceeded expectations, underscoring the ongoing global struggle to control rising prices.
In contrast, Europe presents a different picture, with sluggish growth and declining inflation leading ECB’s Rehn to affirm the market’s expectation of two rate cuts this year.
Speeches:
Market Insight:
Market volatility continues to decrease as central bank interest rate decisions align with current market expectations. Attention is now focused on Friday’s US Core PCE data (the Federal Reserve’s preferred inflation measure) for signs of further progress in controlling inflation. The euro remains vulnerable ahead of the first round of voting in the French elections on Sunday.