Pound and Euro Slide Amid Market Pressures
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Daily Currency Update
The pound has continued its decline, falling over 0.5% to hit a 14-month low. This ongoing weakness reflects mounting uncertainties around the UK economy, particularly as Chancellor Rachel Reeves returns to her desk following a visit to China. Market participants may be cautious about the UK’s economic outlook, grappling with persistent inflationary pressures and potential trade challenges. The lack of clear positive catalysts has left the pound vulnerable, especially amid a strengthening US dollar. Similarly, the euro has fallen to its weakest point since November 2022.Key Movers
In the US, Friday's data revealed an unexpected acceleration in job growth for December, accompanied by a drop in the unemployment rate to 4.1%. The strong performance of the labour market to close out the year has led traders to significantly scale back expectations of Federal Reserve rate cuts in the near future.Expected Ranges
- GBP/USD: 1.2095 - 1.2175 ▼
- GBP/EUR: 1.1835 - 1.1895 ▼
- GBP/AUD: 1.9665 - 1.9765 ▼
- EUR/USD: 1.0185 - 1.0255 ▼