Key Headlines:

• EUR/USD Hits Two-Year Lows
• USD Softens After Bessent Appointment

Yesterday Recap

The euro saw significant volatility on Friday, with EUR/USD dropping to a two-year low, while GBP/EUR reached new 2024 highs. This came after eurozone PMI data showed a sharper-than-expected decline in November, prompting markets to raise expectations for a 0.50% ECB rate cut in December. The pound also struggled, weighed down by weaker-than-expected UK retail sales and PMI figures. In contrast, stronger-than-anticipated US PMI data reinforced the narrative of relative economic strength in the United States.

Today’s Rates

Today's Interbank Rates at 09:47 am against GBP movement.

GBP>EUR – 1.1991

GBP>USD – 1.2572

EUR>GBP – 0.8339

EUR>USD – 1.0488

GBP>CAD – 1.7544

GBP>AUD – 1.9302

GBP>SEK – 13.815

GBP>AED – 4.6179

GBP>HKD – 9.7850

GBP>ZAR – 22.694

GBP>CHF – 1.1183

GBP>PLN – 5.1925
 

Today’s Key Takeaways

USD Starts the Week Lower:

• The dollar weakened after Scott Bessent was announced as President-elect Trump’s pick for US Treasury Secretary, with markets viewing him as a fiscal hawk favouring lower deficits, subdued inflation, and a cautious stance on tariffs.

US Calendar Highlights:

• A shortened trading week due to Thanksgiving on Thursday and an early market close on Friday.
• Key events include the release of the Fed’s November FOMC minutes on Tuesday and the core PCE data on Wednesday.

EUR Recovery Against USD:

• The euro regained some ground from Friday’s losses but needs strong consumer confidence data on Thursday and a higher CPI reading on Friday to sustain its upward momentum.

Quiet Week for GBP:

• Limited UK data this week offers little opportunity to shift sentiment after last Friday’s disappointing economic figures.

25th November 2024

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