Thursday 19/12/2024
Daily Update 19/12/2024
Key Headlines:
- The Federal Reserve signals expectations for just two rate cuts in 2025, reflecting a cautious approach.
- Markets anticipate that the Bank of England will maintain current interest rates in its upcoming decision.
Recap
The Federal Reserve delivered a more hawkish stance than anticipated, boosting USD strength and pushing GBPUSD and EURUSD toward yearly lows. While the Fed implemented a widely expected 25bps rate cut, it revised its dot plot to reflect just two rate cuts next year and noted reduced risks to the job market, supporting a slower pace of easing. Market expectations for 2025 rate cuts now align at 35bps. Meanwhile, the Bank of Japan maintained its rates, with the cautious policy decision interpreted as dovish, leading to broad JPY weakness.
Today’s Rates
Today's Interbank Rates at 09:40 am against GBP movement.
GBP>EUR – 1.2153
GBP>USD – 1.2661
EUR>GBP – 0.8229
EUR>USD – 1.0420
GBP>CAD – 1.8222
GBP>AUD – 2.0282
GBP>SEK – 13.962
GBP>AED – 4.6506
GBP>HKD – 9.8390
GBP>ZAR – 23.099
GBP>CHF – 1.1349
GBP>PLN – 5.1806
Today’s Key Takeaways
- USD has pared back some of last night’s gains, but its strength is expected to persist through the end of the year.
- The Bank of England’s meeting today is anticipated to have minimal impact, with no press conference planned and rates expected to remain unchanged.
- Any hawkish signals from the BoE could bolster GBP, potentially driving it to test new highs against EUR, AUD, and CAD as the year concludes.
19th December 2024
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