As Friday unfolded, the USD continued its upward trajectory, while the market's focus intensified on the declining EUR narrative, propelling the GBPEUR currency pair to heights not witnessed since April 2022.
*Daily move - against G10 rates at 7:30am, 11.11.24
** Indicative rates - interbank rates at 7:30am, 11.11.24
The weak EUR narrative has continued this morning with GBPEUR sustaining an upward trajectory and EURUSD looking increasingly more likely to dip below the June support levels. The theme remains the same where markets continue to see risks for Europe over the Trump administration’s threat of tariffs.
Meanwhile on Friday, there was a slew of investment banks predicting the pound will continue to outperform non-dollar currency crosses on the basis that the UK will be less vulnerable to trade restrictions and the Bank of England's (BoE's) hints at a slower rate cut pace.
Tuesday's job numbers will be in focus for GBP, and anything that suggests the job market is stronger than expected will likely add to GBP gains. This Thursday, Governor Bailey is scheduled to take the stage, and this will be followed by the much-anticipated release of GDP figures on Friday.
Stateside, focus will fall on the CPI and PPI inflation readings as well as retail sales numbers. Markets have been easing the number of rate cuts expected by the Federal Reserve (Fed) over the next 12 months, and hotter numbers this week will add to this argument and thus be USD supportive. Also this week, we should find out if the Republicans win the House.
Our team of currency experts are here to help you get more from your money when making international payments. 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.
