Markets anticipating Friday’s US Core PCE data
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Daily Currency Update
Traders are anticipating that Friday's US data will reveal a slowdown in the annual growth rate of the Federal Reserve's preferred core personal consumption expenditure (PCE) index to 2.6% in May, marking the lowest level in over three years. This deceleration could pave the way for potential rate cuts. However, policymakers remain cautious, signalling that they are not in a hurry to make changes. Fed Governors Lisa Cook and Michelle Bowman have emphasized that any decisions regarding interest rates will be data-dependent, reinforcing a measured approach to potential monetary policy adjustments.Key Movers
As mentioned in yesterday's update, politics is currently at the forefront of traders' minds. This week is particularly significant, with the first US presidential debate between President Joe Biden and his predecessor Donald Trump scheduled for Thursday. This event is expected to draw considerable attention and could influence market sentiment.Adding to the political uncertainty, the French elections are set to begin this weekend. Traders are closely monitoring both events, as they have the potential to create volatility in the markets. Investors will be reacting to the latest developments and assessing their potential economic impacts.
Expected Ranges
- GBP/USD: 1.2615 - 1.2695 ▼
- GBP/EUR: 1.1835 - 1.1885 ▲
- GBP/AUD: 1.8915 - 1.8995 ▼
- EUR/USD: 1.0635 - 1.0705 ▼