GBP was the top performer from last week
Daily Currency Update
The Pound stood out as a top performer from last week as it was boosted by a brighter economic outlook in the UK and positive comments from Bank of England officials. Economic releases in the UK, featuring lower-than-expected public sector net borrowing and favourable PMI data, bolstered the strength of the Pound, yet lingering concerns persist about the UK possibly entering a recession despite a positive Autumn Statement.A fairly light week on the UK data front, with traders looking forward to Bank of England Governor Andrew Bailey speaking on Wednesday, with recent comments suggesting that it is too early to be talking about rate cuts after the massive drop in the latest CPI reading.
Key Movers
Last week, the US dollar under performed, mirroring a widespread rally in stocks and commodities. This trend was driven by investor preference for a soft-landing in the US economy, coupled with a more subdued tone reflected in the FOMC minutes. As the risk-on sentiment appears likely to persist in the short term, possibly until the next Federal Open Market Committee (FOMC) rate decision, the dollar may continue to experience downward pressure.Expected Ranges
- GBP/USD: 1.2585 - 1.2645 ▲
- GBP/EUR: 1.1495 - 1.1555 ▲
- EUR/USD: 1.0915 - 1.0985 ▲