US jobless claims came in lower than expected yesterday afternoon, dampening the recent fears over the US economy. Following this latest data, interest rate pricing for September cuts in the US reduced by 3 basis points, causing US equities to climb higher. USD gained across the board as a result, along with GBP due to its correlation with equity market performance.
*Daily move - against G10 rates at 7:30am, 09.08.24
** Indicative rates - interbank rates at 7:30am, 09.08.24
Very little in the diary today aside from Canada unemployment numbers, so we expect markets to continue to push higher on boosted risk sentiment. As a result, we expect GBP to continue to recover the lost ground seen over the last week. Next week’s economic calendar looks far busier with the release of UK job numbers, US and UK inflation numbers, UK and EU GDP as well as UK and US retails sales.
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