Home Daily Commentaries GBP recovers from recent lows

GBP recovers from recent lows

See Wah Li
Written by
See Wah Li

See Wah Li

OFXpert

With more than 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations.

| Tuesday 13 February, 2024

Daily Currency Update

The pound has strengthened above $1.26, pulling away from recent lows, following news that UK wage growth slowed less than anticipated at the end of 2023. This suggests that the labour market may take longer to cool down, potentially delaying an interest rate cut by the Bank of England.

The UK is anticipating several key economic indicators this week, including inflation rate and GDP. Market expectations indicate a 0.1% contraction in Q4, which could tip the UK into a technical recession. Despite this, BoE Governor Bailey expressed optimism on Monday, noting signs of an economic recovery.

Key Movers

On Monday, the dollar experienced a slight increase against major currencies, with investors preparing for upcoming data releases on US inflation and retail sales. These releases will provide insights into when the Federal Reserve might initiate the anticipated interest rate cuts.

Expected Ranges

  • GBP/USD: 1.2625 - 1.2695 ▲
  • GBP/EUR: 1.1735 - 1.1815 ▲
  • EUR/USD: 1.0715 - 1.0785 ▼

Written by

See Wah Li

OFXpert

See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.