Bets on a 50 bps rate cut continued to rise yesterday, seeing a weaker USD across the board. GBP benefitted from the improved risk appetite in the markets.
*Daily move - against G10 rates at 7:30am, 17.09.24
** Indicative rates - interbank rates at 7:30am, 17.09.24
Today, ahead of tomorrow's Fed meeting, US retail sales numbers are expected to show a marginal decline of 0.2% month-on-month in August.
The ZEW survey pessimism is unlikely to have much of a negative impact on the EUR considering the main driver in FX currently is whether the Fed will cut interest rates by 25 bps or 50 bps tomorrow.
We expect USD to stay on the back foot over the next 24 hours.
UK CPI numbers are coming out tomorrow morning and, as mentioned yesterday, the services component will be key to the BoE's rate cut direction.
Our team of currency experts are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer specialised guidance on the best options available to you. Over the last 19 years we’ve helped over a million customers and last year alone processed over £12bn. We’re tried and trusted, and we’re ready to help you.
Have a great day.
