USD is still riding a wave of gains, supported by a slightly higher than expected September CPI and Fed Bostic's openness to "skipping" a rate cut if future data support it.
Initial jobless claims came in marginally higher than expected and slightly tempered USD gains.
GBP had a jab thrown at it yesterday afternoon when autumn budget rumours suggested that capital gains tax may rise from present levels to between 33%-39%.
UK GDP in August rose to 0.2%, in line with expectations, but this has barely had any impact on GBP today.
*Daily move - against G10 rates at 7:30am, 11.10.24
** Indicative rates - interbank rates at 7:30am, 11.10.24
If we see an uptick in the US PPI numbers today market reaction could be similar to yesterday. With tensions in the Middle East still simmering away as well, USD seems likely to be supported going into the weekend.
Next week will be a big one for GBP with the release of job and inflation numbers.
Any indication that price and wage pressures are subsiding would likely prompt market expectations of the BoE accelerating its rate-cutting trajectory.
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