France
9 December 2024
Weekly Market Headlines:
Sterling to euro rates remain at recent highs as we await the European Central Bank’s (ECB) upcoming decision this Thursday.
- ECB rate expectations: The ECB is anticipated to cut interest rates to 3%, marking the third consecutive reduction. This signals their continued effort to loosen monetary policy amidst political pressures in Germany and France, adding strain to the euro.
- US inflation update: On Wednesday, the latest US inflation data (expected at 2.7% YoY) will offer insights into the Federal Reserve’s potential interest rate moves as we head into 2025.
- UK economic data: The week concludes with Industrial and Manufacturing figures from the UK. These could bring some volatility to the pound as markets react.
Sterling to euro rates are holding at their strongest levels in recent weeks, creating opportunities for those monitoring their currency strategies. Markets are focusing on Thursday’s European Central Bank (ECB) decision, where a rate cut to 3% is widely anticipated. This would mark the third consecutive cut, emphasizing the ECB’s proactive approach to boosting the economy through easier monetary policy. Political events in Germany and France are also applying downward pressure on the euro.
Midweek, attention shifts to the US, where inflation data is forecasted to rise to 2.7% year-on-year. This report will likely shape expectations for the Federal Reserve’s interest rate policy as 2025 approaches.
By Friday, UK Industrial and Manufacturing data will take the spotlight, potentially driving pound volatility. This could present both challenges and opportunities for your currency plans.
Stay informed and take advantage of current market conditions. Call your account manager on +44 (0) 204 506 5672 to discuss how we can support your trading needs.
What events might move exchange rates this week?
GBP
- Friday: Industrial and Manufacturing data
EUR
- Thursday: European Central Bank decision
USD
- Wednesday: Inflation data
