Currency news

Bailey suggests quicker inflation decline

Head of FX Analysis at Equals Money
-
3
min read
Publish date
October 24, 2024
  • GBP declined following the Governor's comments
  • PMI numbers in focus today


Yesterday's currency recap

UK inflation is cooling faster than BoE officials had been expecting, stated Governor Bailey yesterday. His comments caused GBP to decline further going into the evening. This could be yet another signal that perhaps the BoE will be more active in the pace of future rate cuts.

The Fed’s Beige Book was largely a non-event. Apart from a slight surprise increase in employment there was little to suggest economic growth across most parts of the US. Once again USD continued to eke out gains across the G10.

Today's GBP rates

Currency pair Daily move* Indicative rate**
GBPAUD 0.48% 1.9525
GBPCAD -0.14% 1.7916
GBPCHF -0.16% 1.1218
GBPDKK -0.07% 8.9598
GBPEUR -0.07% 1.2012
GBPJPY 0.87% 197.8780
GBPNOK 0.51% 14.2502
GBPNZD 0.35% 2.1561
GBPSEK 0.20% 13.7191
GBPUSD -0.30% 1.2947


*Daily move - against
G10 rates at 7:30am, 24.10.24

** Indicative rates - interbank rates at 7:30am, 24.10.24

Key data points

Currency Event Period Consensus Previous
EUR Manufacturing PMI Oct 45.10 45.00
EUR Services PMI Oct 51.50 51.40
EUR Composite PMI Oct 49.70 49.60
GBP Manufacturing PMI Oct 51.50 51.50
GBP Services PMI Oct 52.40 52.40
GBP Composite PMI Oct 52.50 52.60
USD Manufacturing PMI Oct 47.50 47.30
USD Services PMI Oct 55.00 55.20
USD Composite PMI Oct 53.80 54.00

What we think

A slew of PMI numbers is out today to give an early indication of economic activity in October. In light of recent comments from members of the ECB, the European numbers will be closely scrutinised. A miss on UK numbers could add on to the negative sentiment on GBP that Governor Bailey's comments caused last night.

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