The EUR sell-off continued yesterday as continuing fears over the impact of potential tariffs on Europe’s economy continued to weigh on the single-bloc currency. EURUSD fell to the lowest levels seen last in April and a threat remains that we could push lower than the lows of this year. GBPEUR extended gains, hitting the highest levels seen since April 2022.
*Daily move - against G10 rates at 7:30am, 12.11.24
** Indicative rates - interbank rates at 7:30am, 12.11.24
UK wage growth numbers came in higher than expected this morning, suggesting that the Bank of England (BoE) will exercise caution in cutting rates and as a result we have seen the odds of a December rate reduce marginally. However, notably, the unemployment rate came in higher than expected at 4.3%, prompting GBP to start the day lower across the board.
For the remainder of the day, we have the latest ZEW survey to gauge sentiment across Europe, as well as speeches from BoE chief economist Huw Pill and Federal Reserve (Fed) Governor Christopher Waller. USD is continuing its trend this morning, seeing GBPUSD and EURUSD dropping further.
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