UK: Weekly FX Market Update 9 December 2024

GBP

• Bank of England MPC member Ramsden speaks, to kick off the week.

• However, more revealing may be the UK GDP data, which is due to be released on Friday.

• Did US Dollar seasonality help push the GBPUSD higher in early December?

• Will Bank of America be correct in forecasting that GBPUSD will hit 1.3800 by the end of 2025?

EUR

• EURUSD squeezed higher last week, despite the fall of the French government.

• The ECB sets rates this Thursday. Will they deliver a 0.25% or a 0.50% rate cut?

• As important will be what ECB President Lagarde has to say about the future path of euro rates.

• Will the euro continue to defy the negative sentiment surrounding it, or will it succumb to the naysayers?

USD

• The US economy is still outperforming its peers.

• US Annual CPI is released on Wednesday. If it squeezes higher, will it stop the Fed from cutting rates this month?

• Will the US Dollar continue to take a breather, or will Trump trade and CPI data strengthen the greenback again?

Main events for this week:

Mon Dec 9

09:30 EUR Sentix Investor Confidence

13:00 GBP Bank of England Ramsden speaks

Tues Dec 10

03:30 AUD Reserve Bank Australia Cash Rate/Statement

07:00 EUR German Final CPI

Wed Dec 11

13:30 USD CPI

14:45 CAD Bank of Canada Rate/Statement

15:30 CAD Bank of Canada Press Conference

Thurs Dec 12

00:30 AUD Employment Rate

08:30 CHF Swiss National Bank Rate

13:15 EUR European Central Bank Rate/Statement

13:30 USD Producer Price Index/Unemployment Claims

13:45 EUR European Central Bank President Lagarde Press Conference

Fri Dec 13

07:00 GBP GDP/Industrial Production/Manufacturing Production