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Traders anticipating 50 basis point cut from BoE in 2024

See Wah Li
Written by
See Wah Li

See Wah Li

OFXpert

With more than 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations.

| Friday 17 May, 2024

Daily Currency Update

This morning, traders will keenly observe comments from Catherine Mann, a member of the BoE's monetary policy committee, regarding the timeline for when the UK central bank might begin lowering borrowing costs.

The markets anticipate approximately 50 basis points (bps) in interest rate cuts by the BoE in 2024, with the first reduction expected in August.

Key Movers

The US dollar is on track for its largest weekly decline against the euro in over two months. This drop was driven by signs of cooling inflation and a softening US economy, which increased the likelihood of upcoming rate cuts.

April's US inflation numbers matched expectations but were lower than the previous month's figures. This bolstered confidence that the Federal Reserve will reduce interest rates in September and again in December, leading to rallies in stocks and bonds while putting pressure on the dollar.

Expected Ranges

  • GBP/USD: 1.2625 - 1.2695 ▲
  • GBP/EUR: 1.1635 - 1.1695 ▲
  • GBP/AUD: 1.8945 - 1.9025 ▼
  • EUR/USD: 1.0815 - 1.0885 ▲

Written by

See Wah Li

OFXpert

See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.

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