Currency news

Powell confirms September rate cut

Head of FX Analysis at Equals Money
-
3
min read
Publish date
27/08/24
    • GBPUSD hit 2022 highs
    • Seasonal performance of USD in September worth noting


    Currency recap

    On Friday, Fed Chair Powell confirmed that a September rate cut is coming. Initial market reaction saw further weakness in USD while GBPUSD hit its highest levels since early 2022 and EURUSD - a new July 2023 high.

    Markets are still largely pricing in a 0.25% rate cut, with a focus on job numbers on September 6th to see whether we could get a 0.5% rate cut.

    Today's GBP rates

    Currency pair Daily move* Indicative rate**
    GBPAUD -0.08% 1.9459
    GBPCAD 0.05% 1.7799
    GBPCHF 0.10% 1.1187
    GBPDKK 0.05% 8.8218
    GBPEUR 0.05% 1.1824
    GBPJPY 0.27% 191.0890
    GBPNOK 0.05% 13.9162
    GBPNZD -0.20% 2.1216
    GBPSEK -0.10% 13.4649
    GBPUSD 0.08% 1.3201


    *Daily move - against
    G10 rates at 7:30am, 27.08.24

    ** Indicative rates - interbank rates at 7:30am, 27.08.24

    Upcoming speeches

    • None today.

    What we think

    We're expecting a quiet day ahead today so let's look at the rest of the week instead.

    On Wednesday, the focus will be on Nvidia’s results to gauge the risk appetite in markets for this week. On Thursday, we have second growth estimates for Q2 from the US and on Friday we have core PCE inflation numbers from the US, as well as August's inflation numbers from Europe.

    GBP looks well supported at the start of the week and will rely on continued optimism in markets, with risk appetites continuing to march towards July’s highs versus EUR and USD. Going into the month's end, much will depend on the greenback itself.

    It's worth noting that seasonally this tends to be USD's strongest month. During this same time period, over the last 5 years, GBPUSD has seen a 2.4% drop on average and EURUSD a 1.9% drop on average. USD buyers will do well to take advantage of this current weakness in the currency.

    We specialise in currency guidance

    Our team of currency experts are here to help you get more from your money when making an international payment. 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.

    International payments made simple
    Find out more

    Still have questions?

    This is some text inside of a div block.

    Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

    This is some text inside of a div block.

    Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

    This is some text inside of a div block.

    Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.