As the week kicks off with a calm start due to a sparse economic calendar and the US observing President's Day, the market remains steady. Meanwhile, the USD continues its downward trend, echoing the impact of last Friday's disappointing retail sales figures.
*Daily move - against G10 rates at 7:30am, 18.02.25
** Indicative rates - interbank rates at 7:30am, 18.02.25
The Reserve Bank of Australia (RBA) cut interest rates by 0.25% early this morning but was hawkish in its message to markets, suggesting caution around future rate cuts. As a result, AUD is slightly firmer.
GBP is being supported after jobs data painted a stable picture. The unemployment rate didn’t rise to 4.5% as expected remaining at 4.4%, and wage growth came in higher than expected. As a result, this supports the Bank of England’s (BoE) recent comments on being cautious with further rate cuts – the next rate it priced in for May. Tomorrows CPI numbers could also give GBP a lift given current expectations are for a rise in prices.
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