Home Daily Commentaries USD steadies against GBP and EUR

USD steadies against GBP and EUR

Daily Currency Update

The US dollar steadied on Wednesday morning, as investors dialled back bets on US rate cuts and the fear of a banking crisis, although the USD does face some pressure from the EUR with Thursday's ECB rate decision looming.

The European Central Bank meets on Thursday and markets think a 50-basis point hike is likely, a more hawkish stance than traders expect from the US Federal Reserve next week.

Key Movers

News out of the UK continues to confirm that recession is becoming increasingly less likely. We now look forward to the UK Budget Report, which might influence the British Pound.

The chancellor is widely expected to announce an extension of financial support for energy bills and policies to encourage more people into work, alongside updated forecasts for the economy and public finances.

It is worth noting that ministers will also be anxious to avoid the kind of adverse market reaction that greeted last September’s so-called “mini-Budget” in a context of high inflation

Expected Ranges

  • GBP/USD: 1.2085 - 1.2155 ▼
  • GBP/EUR: 1.1305 - 1.1375 ▲
  • EUR/USD: 1.0645 - 1.0725 ▼