The USD continued its upward trajectory yesterday, bolstered by rising US Treasury yields, as the market grows increasingly comfortable with the prospect of a modest 0.25% rate cut by the Fed next week. However, should Wednesday’s CPI numbers suggest a larger rate cut would be warranted, this could all change.
*Daily move - against G10 rates at 7:30am, 10.09.24
** Indicative rates - interbank rates at 7:30am, 10.09.24
UK wage growth cooled to a two-year low in the three months leading up to August. Over the same period, the unemployment rate fell to 4.1%, cementing market pricing that we will see another rate cut in the UK in November.
Wages excluding bonuses fell to 5.1%. Wages including bonuses fell to 4%. As a consequence, GBP has seen an uptick across various markets.
Very few developments are expected for the rest of the day and therefore the focus will turn towards the highly anticipated presidential debate between Kamala Harris and Donald Trump in the early hours of tomorrow morning (UK time).
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