Riding on the coat-tails of Friday morning's retail sales numbers, as well as divergent interest rate policies favouring the currency, GBP finished the week higher.
JPY was the loser of the day following the dovish interpretation of BoJ Governor Ueda’s comments on future rate policy. Meanwhile the USD received some support from this sentiment.
*Daily move - against G10 rates at 7:30am, 23.09.24
** Indicative rates - interbank rates at 7:30am, 23.09.24
PMI survey numbers out later today will help gauge economic performance from Europe and the UK.
Europe's numbers are not expected to show a pretty picture, with more misery predicted from the manufacturing sector. UK PMIs, on the other hand, are expected to be better, presenting a clear divergence between the UK and Europe's September performance. Should this be the case, GBP should outperform the EUR.
French PMI numbers, already out this morning, reveal a surprise decline in the services sector.
USD is getting some support following the negative moves on JPY at the end of last week. This week will be reliant on updates from Federal Reserve meetings and core PCE numbers on Friday. These will reveal if the currency can stay above its current support levels and temper expectations of another 50 bps rate cut in November.
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