The Pound has claimed the title of 2024’s best-performing currency, driven by the Bank of England’s decision to maintain higher interest rates than other major economies. With inflation projected to remain elevated, the Bank has emphasised a cautious approach to rate cuts, providing continued support for Sterling.
US Consumer Confidence in Line with Expectations
In the U.S., yesterday’s notable data release was the November consumer confidence report. The index rose to 111.7, slightly exceeding the forecast of 111.3, reflecting steady optimism among American consumers.
Fed Minutes Signal Gradual Rate Cuts
Minutes from the Federal Reserve’s early November FOMC meeting offered little new insight but reinforced the expectation of gradual rate cuts. This cautious approach aligns with the Fed’s goal of maintaining economic stability while managing inflation.
Currency Market Trends
Major currency pairs traded within narrow ranges during the European session. However, Sterling displayed a slightly firmer tone, continuing its strong performance against its peers.
Upcoming Data to Watch
Looking ahead, all eyes are on the upcoming US personal income and consumption data for October. A monthly increase of 0.3% is anticipated, which would bring the annual rate to 2.8%, up from 2.7%. These figures could influence market sentiment and expectations for future Federal Reserve policies.
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