Market sentiment was rattled yesterday after reports that Iran was preparing a ballistic missile attack against Israel. As a result, GBP declined across the board and USD gained broadly on safe haven demand.
Earlier in the day EU CPI fell below projections, month-on-month, cementing the market's pricing for an October rate cut.
USD data was a mixed bag - JOLTS job openings came in stronger than expected while, disappointingly, ISM manufacturing held steady at 47.2, failing to rise to 47.5 as anticipated.
*Daily move - against G10 rates at 7:30am, 02.10.24
** Indicative rates - interbank rates at 7:30am, 02.10.24
Geopolitical risks will likely be the main driver in markets, at least before Friday’s job numbers from the US. Building on yesterday's market movements, the current landscape is poised to further bolster the USD, regardless of any potential letdown from the ADP payroll figures.
GBPEUR continues to trade near 30-month highs.
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