 Sterling is currently the weakest performer in today’s trading, though selling pressure remains somewhat contained for now. Weaker-than-expected inflation data from the UK further strengthened the case for BoE to cut interest rates in November. More critically, markets are now pricing in a higher probability of another back-to-back rate cut in December. Interest rate futures reflect a 90% chance of two 25bps cuts by the end of the year, aligning with BoE Governor Andrew Bailey's remarks about taking a "more activist" approach to monetary easing. In the broader forex market, Australian Dollar and New Zealand Dollar are following Sterling's weakness. Both currencies are anticipating impacts from tomorrow’s joint press conference featuring China’s Housing Ministry, Finance Minister, People's Bank of China, and National Financial Regulatory Administration. Speculation is building that the Chinese government would announce new support measures to aid the struggling housing market.... |
