03/10/2024
Written by: Ian Morley
Summary:
The USD strengthened yesterday following higher-than-expected GDP and core PCE figures for the second quarter of this year. Despite this, the market still anticipates a rate cut in September.
Speeches:
Market Insight:
Today, the focus remains on the USD with the release of June’s core PCE numbers. Yesterday’s higher Q2 figures suggest that June’s reading might also exceed expectations, potentially boosting the USD further to end the week on a strong note.
GBP has been weak this week due to decreased risk appetite. There is also some apprehension ahead of the Bank of England meeting next week, with a 40% probability of a rate cut being factored in by the markets. It is believed that all positive news for GBP might already be reflected in the current prices, considering the UK elections are over and rate cuts are anticipated later this year. Therefore, there is a strong argument that GBP might face a retracement in the coming weeks.