Today’s Focus: US Inflation Data
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Daily Currency Update
Should today's US inflation data fall below expectations, the pound could experience an uptick against the US dollar. Analysts foresee a marginal deceleration in both the annual and monthly inflation rates in the US, a trend usually detrimental to the dollar. Consequently, investors might contemplate the likelihood of at least two rate cuts by the Fed within this year.Furthermore, the US dollar weakened to a one-month low against the Euro this morning, reflecting market anticipation of the impending US inflation report and its potential influence on Federal Reserve policy direction.
Key Movers
In Europe, if the descent of inflation halts, the ECB faces a challenging dilemma concerning interest rates. While it has confirmed the impending rate cut scheduled for next month, it also implies that no reduction will be approved until the headline inflation rate hits its 2% target. This week’s release of inflation figures holds heightened importance compared to previous readings.Expected Ranges
- GBP/USD: 1.2555 - 1.2645 ▲
- GBP/EUR: 1.1585 - 1.1665 ▼
- GBP/AUD: 1.8905 - 1.9015 ▼
- EUR/USD: 1.0805 - 1.0875 ▲