26/07/2024
Written by: Ian Morley
Summary:
Today’s trading session was characterised by low volatility, resulting in marginal gains for the USD against various currencies, driven by firmer treasury yields following higher than expected US durable goods data. Despite comments from a Bank of England (BoE) member cautioning against excessive rate cut expectations, the GBP remained largely unchanged.
Speeches:
No speeches were scheduled for today.
Market Insight:
We anticipate another subdued day influenced by end-of-quarter flows directing FX market movements. After a recent decline, the GBP showed some resilience yesterday. We are keen to observe whether sellers perceive this uptick as an opportunity to offload the currency at a more favourable level or await further appreciation. Nevertheless, amidst speculations of the BoE potentially cutting rates following the Federal Reserve, there’s a prevailing sentiment in the market to continue selling the GBP.