Quiet start to week ahead of Wednesday’s Fed interest rate decision
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Daily Currency Update
It’s a relatively quiet start to the week with no major data releases, leaving most currency pairs trading near last week’s closing levels. Markets are bracing for potential volatility on Wednesday evening when the US Federal Reserve announces its latest interest rate decision. The consensus expectation is a cut from 4% to 3.75%, though limited recent economic data—due to the US government shutdown—means there may be some disagreement among policymakers.There are no notable releases from the Eurozone this week, while the UK’s key data point will be Friday’s monthly GDP print. GBP/USD is trading around 1.3325, with EUR/USD near 1.1650.
Key Movers
A large backlog of delayed US data has now been added to the economic calendar, setting the stage for a potentially volatile run into Christmas for financial markets. Next Tuesday alone brings the delayed November jobs report - including Non-Farm Payrolls, wage growth, and the unemployment rate - along with Retail Sales and both Services and Manufacturing PMIs. The following day delivers the postponed inflation data with the latest CPI reading. Altogether, it could make for an exceptionally turbulent week.Expected Ranges
- GBP/USD: 1.3280 - 1.3400 ▼
- GBP/EUR: 1.1400 - 1.1480 ▼
- GBP/AUD: 2.0000 - 2.0160 ▼
- EUR/USD: 1.1590 - 1.1700 ▲