UK inflation is cooling faster than BoE officials had been expecting, stated Governor Bailey yesterday. His comments caused GBP to decline further going into the evening. This could be yet another signal that perhaps the BoE will be more active in the pace of future rate cuts.
The Fed’s Beige Book was largely a non-event. Apart from a slight surprise increase in employment there was little to suggest economic growth across most parts of the US. Once again USD continued to eke out gains across the G10.
*Daily move - against G10 rates at 7:30am, 24.10.24
** Indicative rates - interbank rates at 7:30am, 24.10.24
A slew of PMI numbers is out today to give an early indication of economic activity in October. In light of recent comments from members of the ECB, the European numbers will be closely scrutinised. A miss on UK numbers could add on to the negative sentiment on GBP that Governor Bailey's comments caused last night.
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