Last week seemed pretty eventful in the end with UK inflation coming in lower than expected, putting GBP under pressure.
Thursday's ECB meeting was also deemed more dovish, seeing the EUR broadly weaker and suggesting there is a cap on any upside moves on the currency.
USD continued its dominance in October following a combination of better-than-expected data refuting recession talk and the markets seemingly positioning themselves for a Trump victory as recent polling data shows his chances improving.
*Daily move - against G10 rates at 7:30am, 21.10.24
** Indicative rates - interbank rates at 7:30am, 21.10.24
Apart from the release of PMI numbers from the UK, EU, US and the Fed Beige Book, we're expecting a quiet week ahead.
EU's PMIs on Thursday could prove to be key for EUR, given comments from ECB’s Lagarde last week, suggesting the importance of the PMI numbers on ECB's future rate decisions.
From the UK, we have four speeches from Governor Bailey. Last week's lower-than-expected inflation numbers could spur on further ‘activists’ comments from Bailey, and, if so, this could put pressure on GBP should markets price in more dovish rate expectations from the UK.
Geopolitical influences could also be key this week with IMF meetings in Washington, continued tensions in the Middle East, as well as more focus coming on the US elections in a couple of weeks.
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.
