UK: Weekly FX Market Update 11 November 2024

GBP

• Despite a UK rate cut, a US rate cut and a new US President Elect, GBPUSD has been quietly unmoved.

• Whilst quiet, GBPEUR did regain some ground that was previously lost after the UK budget. Will the market prefer the Chancellor’s Mansion House speech on Thursday?

• This week, UK employment data is released on Tuesday and GDP on Thursday.

EUR

• EURUSD fared worse than GBPUSD last week, with the Euro coming under pressure.

• In part, this weakness came from BMW’s third quarter profit report, which showed it dropped 60%, as well as the German coalition government collapsing.

• With the US Dollar resurgent after the US election, can the Euro withstand the US Dollars advances?

USD

• Donald Trump was re-elected last week, and the Republicans are also close to gaining control of the Senate and House of Representatives.

• Could the election be a result of an unhappy inflation hating population?

• The Federal Reserve cut rates to 4.5% last week, but the US Dollar stayed supported. What will CPI bring on Wednesday?

Main events for this week:

Mon Nov 11

No Top Tier Data

Tues Nov 12

07:00 GBP Claimant Count Change/Average Earnings/Unemployment Rate

10:00 EUR German ZEW Economic Sentiment

15:00 USD FOMC Waller Speaks

15:15 USD FOMC Barkin Speaks

Wed Nov 13

09:45 GBP MPC Mann speaks

10:00 EUR Industrial Production

13:30 USD CPI

14:45 USD FOMC Logan Speaks

18:00 USD FOMC Musalem Speaks

18:30 USD FOMC Schmid Speaks

23:00 AUD FOMC Bullock Speaks

Thu Nov 14

00:30 AUD Employment Data

07:00 GBP GDP/Industrial Production/Goods Trade Balance

13:30 USD PPI

20:00 USD Fed Chair Powell Speaks

20:00 GBP Chancellor Reeves Mansion House Speech

23:50 JPY Prelim GDP

Fri Nov 15

13:30 USD Retail Sales

14:00 USD Industrial Production