GBP moves were rather muted yesterday after Governor Bailey failed to make any comments in the afternoon.
Money markets added to bets on future rate cuts as ECB policymakers signalled they could be open to a faster pace of rate cuts, should the data permit, on signs that disinflation is faster than expected.
USD continued to eke out gains across the day on higher treasury yields.
*Daily move - against G10 rates at 7:30am, 23.10.24
** Indicative rates - interbank rates at 7:30am, 23.10.24
EUR is on the back foot, this morning, with markets amping up the odds of a 0.50% rate cut in December, currently assigned a 40% probability.
EURUSD has dipped to its lowest levels since August 1st, while GBPEUR is close to record highs for 2024. Meanwhile, the Bank of Canada's anticipated 0.50% rate cut today keeps GBPCAD dancing around its impressive 2018 peaks.
We're expecting a quiet rest of the day leading up to the Fed’s Beige Book in the evening, where will be looking for comments from members of the Federal Reserve on growth and the job market, and what this means for the Fed’s easing cycle.
Governor Bailey didn’t make any comments yesterday, but he is expected to be speaking around 7.45pm this evening.
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