The Pound Sterling remains robust against most major currencies as the week kicks off, holding particularly firm against Asia-Pacific counterparts. Investors are eyeing a cautious stance from the Bank of England (BoE), which appears set to opt for a gradual easing of policy rates due to persistent price pressures. A key moment will be BoE Deputy Governor Dave Ramsden’s speech today, expected to provide further insights into the central bank’s rate strategy.
Investor sentiment in the Eurozone has dipped to its lowest in over a year this December, as reflected in the latest Sentix index. The reading fell sharply to -17.5 from -12.8 in November, surpassing the anticipated -13.5. Germany’s economic struggles continue to weigh heavily on the region, with the upcoming snap elections doing little to lift spirits amid ongoing recession concerns.
Despite various geopolitical challenges, global shares have remained stable, supporting a slight rise in the USD. All eyes are now on the upcoming U.S. inflation report, which could influence the Federal Reserve’s decision on a potential rate cut this month.
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