GBP fell across the board during yesterday's trading session after a weaker than projected inflation data report reinforced the case for an interest rate cut at the next Monetary Policy Committee meeting in November. Prices rose at the slowest pace since April 2021, prompting markets to quickly price in a further 0.25% rate cut in December.
Elsewhere the broad USD rally continued as global economic slowdown fears deepened.
The euro fell sharply to a fresh 2-month low versus USD ahead of today's European Central Bank (ECB) interest rate meeting where rates are forecast to be cut by another 0.25%.
*Daily move - against G10 rates at 7:30am, 17.10.24
** Indicative rates - interbank rates at 7:30am, 17.10.24
Later today, we will get the latest read on the health of the US consumer in the form of the US retail sales report where markets expect modest growth. This lies in stark contrast to the UK consumer, where data slated for tomorrow is expected to show the volume of sales has declined.
Looking ahead, with so much noise starting to surround the upcoming US elections, UK budget, China slowdown, and geopolitical angst, markets will have a lot to contend with.
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