Markets calm ahead of Fed interest rate decision
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Daily Currency Update
It’s been a quiet start to the week, with markets steady ahead of tomorrow’s US Federal Reserve interest rate announcement, where a 0.25% cut is widely expected. As the cut is largely priced in, the real focus will be on the Fed’s guidance for the path of rates going forward.
Today we begin to see more of the backlogged US economic releases, starting with the September and October JOLTS Job Openings reports at 3pm. Concerns remain over the strength of the US labour market, and any signs of further weakening could trigger volatility in the dollar.
GBP/USD is slightly firmer at 1.3340, while EUR/USD trades marginally lower around 1.1640.
Key Movers
As noted yesterday, a large volume of backdated US economic data is set to be released in the coming days, with next Tuesday delivering an especially heavy slate. If the figures indicate that the recent soft employment trends have deteriorated further, the dollar could come under pressure as we approach Christmas.Expected Ranges
- GBP/USD: 1.3280 - 1.3400 ▲
- GBP/EUR: 1.1420 - 1.1515 ▲
- GBP/AUD: 2.0045 - 2.0200 ▲
- EUR/USD: 1.590 - 1.170 ▲