USD lost ground across the board yesterday after Core PCE for Q3 was revised lower to 2.1% from 2.2% causing markets to marginally increase the odds of a rate cut in December.
Additional factors contributing to the USD's retreat include the influence of month-end financial flows, as well as expectations that half of the central banks in the G10 (namely the Federal Reserve, European Central Bank, Bank of Japan, Bank of Canada and Swiss National Bank) are poised to adjust their rates within the upcoming three weeks.
*Daily move - against G10 rates at 7:30am, 28.11.24
** Indicative rates - interbank rates at 7:30am, 28.11.24
With the US celebrating Thanksgiving today, focus falls onto the EUR with the release of German CPI numbers in the afternoon. Over the last couple of days we have had some hawkish comments from members of the ECB cautious about excessive rate cuts, that have sparked a notable uptick in the currency's value.
So should we see a higher CPI numbers from Germany today we will likely see the gains continue ahead of tomorrow's numbers from France and the eurozone. Tokyo CPI numbers from Japan could also add further weight to the argument that the BoJ will hike rates in December.
Our team of currency experts are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer specialised guidance on the best options available to you. Over the last 19 years we’ve helped over a million customers and last year alone processed over £12bn. We’re tried and trusted, and we’re ready to help you.Have a great day.
