France
27 August 2024
Weekly Market Headlines:
The British Pound is now trading at its highest level against the US Dollar since March 2022, as the Federal Reserve hints at a possible interest rate cut. Meanwhile, the US Dollar has hit its lowest level against the Euro since summer 2023.
It appears increasingly likely that the Fed will cut interest rates in September, aiming to maintain economic stability. The key question is whether the cut will be 25 basis points or 50 basis points.
At the recent Jackson Hole symposium, Bank of England Governor Andrew Bailey indicated that the BoE is not ready to cut rates again just yet, stating that “the course will therefore be a steady one” regarding interest rates and economic policy. This has strengthened the Pound against several major currencies, including the US Dollar and the Euro. Despite a rate cut earlier this month, it seems the BoE is taking a more cautious, wait-and-see approach.
With light economic data as August ends, attention now turns to further comments from US Fed member Waller tomorrow and Eurozone Consumer Confidence data due on Thursday morning.
