With no UK economic data scheduled for today, market attention turns to key US policymakers’ speeches and the latest US statistics.
Already released this morning, German consumer confidence marginally improved, which was a surprise after previous economic data suggested Germany were heading towards a looming recession.
In the States, US Gross Domestic Product is set to increase to 2.9 percent (previous 1.4%), showing signs of economic growth. However, this surge is largely down to a reduce in inflationary pressures over the course of this year.
Fed Chairman Jerome Powell’s speech will be closely monitored to help clarify whether the aggressive cut was a pre-emptive measure to support future risks or a response to immediate economic concerns.
It was the Federal Reserve’s first rate cut since 2020, after the number of jobs added have slowed and the unemployment rate has moved up.
Pound Sterling has been supported by last week’s monetary policy decision, after they left rates unchanged following a pivotal 8-1 vote. The UK economy remains robust and is performing significantly better than the Eurozone and US – GBPEUR & GBPUSD have both been pushed and remain at a multi-year high.
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