Gentium FX | Daily Report - 1st November 2023 - Federal Reserve Interest Rate Decision In Focus

GBP: This morning, the British Pound has remained relatively stable as traders anticipated tomorrow's Bank of England (BoE) meeting. Investors do not anticipate an interest rate hike and will be closely listening to Andrew Bailey's press conference for any hints. It is increasingly expected that the bank will lower its growth forecasts due to recent weak economic data, while inflation projections are expected to be revised upward due to persistently high prices.

?

EUR: Yesterday, the Euro weakened against the British Pound, dropping from a five-month high, following a contraction in the Eurozone's economy and a decrease in inflation. In fact, the EU reported that inflation fell below the 3% threshold in October. This data supports the European Central Bank's decision to keep interest rates unchanged last week, and money market futures now suggest the first rate cut is likely in the first half of 2024.

?

USD: The U.S. Dollar remains strong as the markets braced for the conclusion of the Federal Reserve meeting later in the day. While the central bank is expected to keep interest rates steady, it is also expected to reaffirm its commitment to a prolonged period of elevated rates, which is favourable for the Dollar. Later this week, attention will turn to the US Nonfarm Payrolls report on Friday.

To open an account or find out more information regarding the current rates please get in touch:

T: +44 203 148 4910 | E: [email protected] | W: www.gentiumfx.com | in: Linkedin.gentiumfx

?