Sterling rises against the euro, dips against the US dollar

10 October 2024

Weekly Market Headlines:

• The pound has bounced back against the euro, recovering some of last week’s losses and remaining within 0.5% of its 2½-year highs. For example, £50,000 now buys €2,250 more than it did on January 1st.
• Today’s US inflation figures could shape future interest rate decisions, potentially impacting the dollar and influencing other currency pairings like GBP to EUR.
• The US dollar has regained strength as expectations for rate cuts decline. Stronger-than-expected US economic data has helped the dollar rise 2.4% this month, with $100,000 now buying an extra £1,800 since October 1st.
• Tomorrow’s UK GDP growth data will be key ahead of the October budget and the next Bank of England interest rate decision. This could also impact the value of the pound.