Good morning,

GBP/USD dropped further yesterday and set a new low for 2021 of 1.3316 whilst EUR/USD touched its weakest level since June 2020 at 1.1185, as the US consolidated it’s strong position on the back of multiple data reports and the latest insights from the Federal Reserve.

The US Initial Jobless claims for the week ended Nov 19th improved to 199K, the best reading since the pandemic started, GDP was upwardly revised to 2.1% in Q3 and the Personal Consumption Expenditures (PCE) Price Index rose from 3.7% to 4.1% for the 12 months to the end of October, showing that inflation continues to run hot.

San Francisco Fed president Mary Daly, who earlier in the month stated the FED should stay patient in the face of high inflation, became the latest U.S rate setter to suggest that the Fed may eventually be persuaded to wind down the Fed’s $120bn per month quantitative easing programme at a faster pace, which would have knock on implications for interest rates.

As the US celebrates Thanksgiving today ,focus will now shift shifting to the ECB as they will release its Monetary Policy Meeting accounts and several policymakers including President Christine Lagarde will be delivering speeches.

Have a great day.

Author: Jack Nicholls, Senior Relationship Manager.

Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available here.

 


References

https://www.poundsterlinglive.com/

https://www.fxstreet.com/