Currency news

USD continues to trade weaker

Head of FX Analysis at Equals Money
-
3
min read
Publish date
20/08/24
    • Market sentiment remains buoyant
    • USD trades near range lows


    Yesterday's currency recap

    USD continued to sell off over the course of yesterday's trading session, as market sentiment remained buoyant going into Friday’s Jackson Hole meeting. Market odds of a 0.50% rate cut in September eased to only 10% probability, now taking GBPUSD close to July’s highs, and EURUSD hit the highest levels since the end of Dec 2023.

    Today's GBP rates

    Currency pair Daily move* Indicative rate**
    GBPAUD -0.40% 1.9330
    GBPCAD 0.02% 1.7712
    GBPCHF 0.02% 1.1215
    GBPDKK -0.02% 8.7562
    GBPEUR -0.02% 1.1735
    GBPJPY -0.50% 190.1240
    GBPNOK -0.64% 13.7309
    GBPNZD -0.34% 2.1308
    GBPSEK -0.70% 13.4228
    GBPUSD 0.31% 1.2985


    *Daily move - against
    G10 rates at 7:30am, 20.08.24

    ** Indicative rates - interbank rates at 7:30am, 20.08.24

    Key data points

    Currency Event Period Consensus Previous
    EUR CPI MoM Jul Final 0.00% 0.00%
    EUR CPI YoY Jul Final 2.60% 2.60%
    EUR Core CPI YoY Jul Final 2.90% 2.90%

    Upcoming speeches

    • None today.

    What we think

    Just the final CPI numbers from the EU on the agenda, which shouldn’t create too much volatility. So again, we expect risk sentiment to continue to drive FX until we get towards the end of the week with the Jackson Hole meeting. USD is still trading relatively weaker with the index near the lows of this year given markets have discounted the frequency of rate cuts this year.

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