Today’s economic calendar is quiet, with no major data releases. Attention shifts to Thursday for the first significant report of the week, when the U.S. will release the Consumer Price Index (CPI) report, the first since the Federal Reserve cut rates by 50 basis points last month. This report could provide important insights into inflation trends and the Fed’s future actions.
Analysts expect the CPI to decline to 2.3%, down from 2.5% year-on-year. This shift might indicate easing inflation pressures, aligning with recent rate cuts. Investors are watching to see if the data supports the Federal Reserve’s policy moves.
In the UK, Friday’s Gross Domestic Product (GDP) report will be the week’s first major release. Growth is expected, and investors are monitoring for signs of economic stability amid currency fluctuations affecting the UK market.
Following recent comments from Bank of England Governor Andrew Bailey regarding interest rates, the pound has fallen against both the US dollar and the euro. The pound/euro rate dropped over 100 points.
The pound/dollar rate has seen a sharper decline, falling nearly 400 points from last week’s yearly high. Markets remain cautious as they await further developments.
For additional insights on how this could affect your business or to capitalise on market volatility – please reach out to speak to one of our experts.