Currency news

Markets wait for US CPI

Head of FX Analysis at Equals Money
-
3
min read
Publish date
10/07/24
  • Powell needs more evidence before confirming rate cuts
  • Quiet day ahead with Fed and BoE speak only factors in diary

See our guide to the key FX dates in July 2024 to be aware of when making cross-border payments.


Yesterday's currency recap

In his testimony yesterday afternoon, Fed Powell signalled willingness to cut interest rates, but needs to see more evidence of a disinflation trend before acting – so not much different to his comments last week. USD gained marginally across the board as a result. In fact, we saw a general reversal of Monday's moves in the FX space.

Today's GBP rates

Currency pair Daily move* Indicative rate**
GBPAUD -0.10% 1.8991
GBPCAD -0.14% 1.7436
GBPCHF -0.16% 1.1476
GBPDKK -0.06% 8.8188
GBPEUR -0.06% 1.1821
GBPJPY 0.16% 206.3180
GBPNOK -0.05% 13.5797
GBPNZD -0.05% 2.0897
GBPSEK -0.38% 13.5005
GBPUSD -0.20% 1.2778


*Daily move - against
G10 rates at 7:30am, 10.07.24

** Indicative rates - interbank rates at 7:30am, 10.07.24

Key data points

Currency Event Period Consensus Previous
USD Non-farm Payrolls Jun 190,000 272,000
USD Unemployment Rate Jun 4.00% 4.00%
USD Average Hourly Earnings Jun 3.90% 4.10%

Upcoming speeches

  • GBP: BoE Pill and Mann
  • USD: Fed Powell, Goolsbee, and Bowman

What we think

Trading in markets continues to be very thin, with very little volatility to start this week. Thursday's CPI number from the US and UK GDP could be the catalysts that increase much needed volatility in the FX space. Should we see the CPI number come in lower than expected, then we could well see GBPUSD make new highs for this year. For GBP, the only thing to note today will be BoE speak from Huw Pill and Catherine Mann, and stateside Fed Powell, Goolsbee, and Bowman will be speaking.

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About the author
Thanim Islam
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Head of FX Analysis at Equals Money

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