12/01/2024 – Exchange Rates
- Posted by currencies in Rate Alerts
- January 12, 2024
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US inflation came in stronger than what was forecasted for December, seeing the inflation rate increase to 3.4% versus 3.1% in November. Even if core inflation dropped from 4% to 3.9%, it was expected to reach a level of 3.8%. This has created more market uncertainty of when the Federal Reserve will start to cut rate and that its initial rate hike might be postponed from March to later in the year.
We can also read about a problematic situation in the Red Sea, that is vital for worldwide shipping. Tensions has risen between the US and Iran after an oil tanker was seized off the coast around Oman. People within the shipping industry states that threat levels are at its highest point in decades. Vessels are now forced to reroute around South Africa, which will cause lengthy delays and put pressure on countries economic growth.
This morning we could see that the UK economy grew by 0.3% in November, after two consecutive contractions in September and October. Biggest contribution to this was from the service sector – retail, car leasing and computer games companies being the biggest winners. Also the public sector grew after it was less impacted by national strike actions in November.
GBP/EUR 1.1620 GBP/USD 1.2756 GBP/AED 4.6771
GBP/AUD 1.9032 GBP/CHF 1.0877 GBP/CAD 1.7040
GBP/NZD 2.0338 EUR/USD 1.0960 GBP/ZAR 23.644
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