USD staging a comeback?

Market reports
Thanim Islam
  • GBP suffers on rate cut bets
  • USD gains as Tuesday's drop could be overdone

Sign up


GBP weakened throughout yesterday's trading session with GBPUSD dropping from its only just formed 2-month high. Yesterday's drop in inflation saw money markets keep their bets of seeing 80 bps worth of rate cuts next year. USD rebounded yesterday after retail sales came in marginally better than expected. USD was also well supported after the Senate supported a stop-gap funding bill that will avert a government shutdown.


Market rates

* Daily move - against G10 rates at 7:30am, 16.11.23

** Indicative rates - interbank rates at 7:30am, 16.11.23


Data points



  • EUR: ECB’s Villeroy, Centeno, Lagarde, Knot, De Cos, Guindos
  • USD: Fed Barr, Mester, Williams, Waller

Our thoughts

Since Tuesday, markets have been trying to figure out whether the sell-off on USD following the weaker US inflation numbers was over-exaggerated or not. We have plenty of Fed speakers today and it will be interesting to see if they remain bullish on their calls for one more rate hike before they start cutting, should they do so then expect USD to attempt to claw back some of the damage from Tuesday. Risk sentiment is waning a bit as well following the recent gains in stock markets which could help its cause. Just the initial jobless claims today on the data front.

How we can help

Our team of currency experts are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer specialised guidance on the best options available to you. Over the last 17 years we’ve helped over a million customers and last year alone processed over £9.1bn. We’re tried and trusted, and we’re ready to help you.

Have a great day.


Expert insights on demand

Sign up to our daily market reports to get the latest news and insights on worldwide currency movements straight to your inbox every morning.

Enter your email address below to subscribe.