Pound, Euro, and Canadian Dollar Hit Monthly Highs Against the U.S. Dollar
GBP
GBP/USD as experienced a rise to 1.2700 (interbank), staying close to its three-month high of 1.2733 (interbank). This increase was attributed to a weaker U.S. dollar and lower US Treasury bond yields.
GBP/EUR is also higher and currently trading at 1.1560 (interbank).
In a statement, BoE's Jonathan Haskel noted persistent inflationary pressures in the UK labour market, suggesting no imminent interest rate cuts from their current 15-year high. BoE Deputy Governor Dave Ramsden also emphasised the need for a restrictive monetary policy to tackle inflation.
Despite the challenges, BoE Governor Andrew Bailey, acknowledging the difficulty, outlined the central bank's projection for inflation to return to 2% by the end of 2025. Bailey is set to speak later in the session.
Events Today (GMT):
15:05 - BoE Gov Bailey Speaks? ? ??????????????
EUR
EUR/USD pair rose to levels not seen since early August, reaching 1.1018 (interbank) before retracing to its current levels 1.0980 (interbank).
In Germany's North Rhine Westphalia, consumer prices fell by 0.3% in November month-on-month, with the annual figure slowing to 3.0%.
ECB officials, including Vice President Luis de Guindos, cautioned against expecting near-term interest rate cuts, emphasizing the objective of bringing inflation back to 2%.
ECB President Christine Lagarde reinforced this stance yesterday, stating that efforts to control price growth were ongoing.
Events Today (GMT):
08:00 - European Central Bank Non-monetary Policy Meeting? ??????????????
13:00 - German CPI (YoY) (Nov) - 3.5% (forecast)
13:00 - German CPI (MoM) (Nov) - -0.2% (forecast)
USD
The Dollar Index, tracking the U.S. dollar against a basket of currencies, traded flat at 102.652, nearing its lowest level since early August. November marked a significant downturn for the dollar, approaching a monthly loss of over 3%, its worst performance in a year.
领英推荐
Federal Reserve officials indicated progress in managing inflation, with Christopher Waller suggesting potential rate cuts in the coming months. He expressed confidence that current policy positions would help slow the economy and achieve the 2% inflation target.
Later in today’s session, the second estimated GDP number for the third quarter will draw investor interest. The U.S. economy is expected to have expanded by 4.9% in Q3.
Furthermore, the markets will turn to the Fed's preferred inflation gauge, the personal consumption expenditures price index, due out tomorrow.
Events Today (GMT):?
13:30 - GDP (QoQ) (Q3) 4.9% (forecast)??
18:45 - FOMC Member Mester Speaks? ? ??????????????
CAD
The Canadian dollar strengthened around 0.4% against the U.S. dollar, reaching 1.3561, its lowest level since October 2nd. USD/CAD is currently trading at 1.3570 (interbank).
Last week, Bank of Canada Governor Tiff Macklem suggested that Canadian interest rates might have peaked.
Speculators reduced their bearish bets on the Canadian dollar, as indicated by data from the U.S. Commodity Futures Trading Commission.
Canadian government bond yields moved lower across the curve, with the 10-year touching its lowest level since September 5 at 3.587%.
Investors are eagerly awaiting tomorrow's GDP data, providing insights into the total value of goods and services produced in Q3.
Events Today (GMT):
13:30 - Current Account (Q3) - 1.0B (forecast)
For further analysis or to book a transaction, please get in touch: