As widely expected, the European Central Bank (ECB) cut interest rates by 0.25% and left the door open for further rate cuts, albeit without committing to any particular path or timeline.
As a result, EUR impact was minimal. US PPI numbers came in marginally higher month-on-month; but jobless claims came in slightly worse, seeing a weaker USD across the board.
USD selling carried on into the evening as media reports suggested that it could be a close call between either a 0.25% or 0.50% rate cut in next week's Fed meeting.
*Daily move - against G10 rates at 7:30am, 13.09.24
** Indicative rates - interbank rates at 7:30am, 13.09.24
Looks like a quiet end to the week with markets likely to take the lead from overall risk appetites.
With markets now thinking a 0.50% rate cut could be on the cards next week, equities are all trading higher this morning, so don’t be surprised for GBP to finish the week higher if optimism in the market remains. Ahead of next week's Fed meeting USD finishes the week weaker.
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