Forex Update: Fed Rates & UK GDP – Sept 11, 2024
Forex Market Update – September 11, 2024
The forex market is seeing some movement today following the release of UK GDP data and with traders waiting for the US CPI report to assess the current inflation rate. This report will be important in understanding the next steps for Federal Reserve interest rates, as inflation remains a key factor for the central bank’s decisions.
Major Currency Pairs:
- EUR/USD: The euro is trading at 1.1045, up 0.23% today. Although the pair has gained today, it remains down 0.32% for the week as markets await Thursday’s ECB rate decision, which could impact the euro’s strength. (DailyForex (FXDailyReport.Com).
- GBP/USD: The pound is trading at 1.30985, rising 0.14% after the release of UK GDP (MoM) data. The report showed zero growth for July, with a 0.0% reading, falling below the forecast of 0.2%. This flat growth adds pressure to the pound and raises concerns about the UK’s economic health. In understanding this, it’s helpful to know that GDP stands for Gross Domestic Product, which measures the value of goods and services produced by a country.
- AUD/USD: The Australian dollar is trading at 0.66587, up 0.09% today but still down 0.86% for the week. Broader concerns about global risk sentiment and weaker commodity prices are affecting the pair.
Commodities:
- Crude Oil (WTI): Oil is currently priced at $66.44 per barrel, rising 1.05% today. However, oil has dropped 4.01% for the week, reflecting worries about a slowdown in global demand.
- Brent Crude: Brent is trading at $69.87, up 0.98% today. Despite today’s gain, it is down 3.89% for the week due to concerns about global growth.
- Gold: Gold is holding steady at $2,523.32 per ounce, up 0.19% today and 1.10% for the week as investors turn to safe-haven assets ahead of the US CPI report.
Metals:
- Silver: Silver is trading at $28.63, up 0.66% today and 1.25% for the week, reflecting ongoing demand for safe-haven investments.
- Copper: Copper is at $4.08 per pound, showing a 1.03% increase today. The metal is up 1.49% for the week.
Key Events Today:
- UK GDP Data (July): Released earlier today, UK GDP for July showed no growth, with a 0.0% result, falling short of the expected 0.2%. This suggests a lack of momentum in the UK economy, which may weigh on the pound as the week progresses.
- US CPI Data: The Consumer Price Index data, set to be released later today, will provide more insights into the current inflation rate. This report is crucial for determining the next move in Federal Reserve interest rates, as the central bank evaluates how to tackle inflation. (FXDailyReport.Com)(DailyForex).