Market shifts: US credit downgrade, RBA rate cut & anticipation of UK inflation data
Daily Currency Update
The US Dollar experienced a decline following Moody's downgrade of the US credit rating to Aa1, coupled with softer US inflation data. This depreciation facilitated a strengthening of GBP/USD.In Australia, the Reserve Bank of Australia reduced the base interest rate by 25 basis points to 4.10%. This decision was influenced by easing inflationary pressures and subdued economic activity.
Key Movers
Attention now turns to tomorrow's UK Consumer Price Index (CPI) report, which is anticipated to provide insights into the Bank of England's (BoE) future monetary policy stance. Today's speech by BoE Chief Economist Huw Pill, precedes the release of April's Retail Price Index, with markets keenly awaiting his remarks for potential indications on the central bank's policy direction.Expected Ranges
- GBP/USD: 1.3350 - 1.3420 ▲
- GBP/EUR: 1.1845 - 1.1880 ▲
- GBP/AUD: 2.0740 - 2.0810 ▲
- EUR/USD: 1.1250 - 1.1290 ▲