Focus now turns to FED minutes
Written by
Daily Currency Update
Data released yesterday showed that German industrial production exceeded expectations, with exports rising by 1.3% in August on a monthly basis, contrary to forecasts of a 1% decline. This improvement has shifted sentiment around the Eurozone’s largest economy, prompting hopes of an economic recovery.Overnight, the Reserve Bank of New Zealand cut interest rates by 50 basis points and hinted at further rate reductions in the coming months. This news has weakened the New Zealand dollar, pushing GBP/NZD to 2.1500, while EUR/NZD has climbed above 1.8000, and USD/NZD has reached 1.6450.
Meanwhile, GBP/EUR and GBP/USD remain influenced by recent geopolitical tensions in the Middle East and upcoming central bank decisions. For the latter, strong U.S. jobs data has reduced the likelihood of a 75-basis-point interest rate cut before the end of the year. Currently, GBP/EUR is trading at 1.1935, and GBP/USD stands at 1.3080.
Key Movers
Attention today will focus on the release of the minutes from the Federal Reserve’s September meeting, due later in the session. During this meeting, the central bank decided to cut rates by 50 basis points, and the commentary will be closely examined for insights into the rationale behind this move. However, given the subsequent statements from Fed policymakers, the minutes may not reveal anything new.Looking ahead, tomorrow’s session will feature the latest U.S. inflation figures (both month-on-month and year-on-year) in the form of the Consumer Price Index (CPI), with declines expected in both readings.
Expected Ranges
- GBP/USD: 1.3060 - 1.3120 ▼
- GBP/EUR: 1.1900 - 1.1970 ▲
- GBP/AUD: 1.9310 - 1.9560 ▲
- EUR/USD: 1.0910 - 1.0990 ▼