Key Headlines:

• Upcoming rate cuts expected from the Bank of Canada (BoC), European Central Bank (ECB), and Swiss National Bank (SNB).
• Key U.S. inflation data scheduled for release on Wednesday.

Recap

Friday’s U.S. employment report has strengthened expectations of a 25-basis point rate cut by the Federal Reserve later this month.

Key data points included:

1. Jobs added: 227,000, falling short of stronger growth expectations.
2. Unemployment rate: Increased to 4.1%.
3. Monthly wage growth: 0.4%.

While these figures initially pressured the USD lower, the currency rebounded following remarks from Fed member Bowman. She cautioned against aggressive rate reductions, warning of potential inflation risks and emphasising a preference for a more measured approach.

Today’s Rates

Today's Interbank Rates at 10:09 am against GBP movement.

GBP>EUR – 1.2078

GBP>USD – 1.2780

EUR>GBP – 0.8278

EUR>USD – 1.0579

GBP>CAD – 1.8067

GBP>AUD – 1.9825

GBP>SEK – 13.918

GBP>AED – 4.6936

GBP>HKD – 9.9380

GBP>ZAR – 22.820

GBP>CHF – 1.1236

GBP>PLN – 5.1429

Today’s Key Takeaways

A significant week for central banks lies ahead, with interest rate decisions expected from Australia, Canada, Switzerland, and Europe.

• Reserve Bank of Australia (RBA): No rate changes anticipated.
• Bank of Canada (BoC): Markets predict a 50bps rate cut.
• European Central Bank (ECB): A 25bps cut is expected.
• Swiss National Bank (SNB): There’s a 60% probability of a 50bps cut.

These rate decisions take on added importance given the looming trade tariff threats from President-elect Donald Trump.

Additionally, U.S. inflation data (CPI) will be closely watched this week. While markets are pricing in a 25bps rate cut at the Federal Reserve’s meeting next week, stronger-than-expected CPI figures could prompt a reassessment of the need for such a move.

09th December 2024

This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information, or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result. Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.