Last night, the US Federal Reserve decided to keep interest rates unchanged at 5.25-5.55% at its December meeting but indicated cuts of 75 basis points in 2024.
Despite meeting market expectations, the US dollar lost 0.85% and 0.92% against the pound and euro, respectively, after the announcement. The euro also made marginal gains against the pound.
This afternoon, the Bank of England (BoE) and the European Central Bank (ECB) will announce their monetary policy decisions. Economists have priced in both the BoE and ECB will keep rates on hold at 4.5% and 4.5%, respectively.
To protect your rate from further fluctuation, talk to your account manager about a forward contract today.
US producer prices steadied in November, following a downwardly revised 0.4% in October and compared to forecasts of a 0.1% rise. The biggest notable price increase for the month was for eggs, which jumped 58.8%, although the report from the Bureau of Labor Statistics doesn’t indicate why this might be.
Former BP boss Bernard Looney is said to forfeit up to £32.4m after the oil giant discovered he was guilty of “serious misconduct” in failing to disclose relationships with colleagues.
Online marketplace Etsy is cutting 225 jobs which equals 11% of its workforce as part of a plan to reduce costs. Chief executive Josh Silverman said the move was necessary as sales have been “essentially flat” for two years.
US retail sales data will be released later today and economists expect to see a decline of 0.1% in November, matching October’s losses.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your account manager on 020 7898 0541 to get started.
