Dear Reader,

Today's overview of economic news and market action

• A busy US data schedule and month-end flows impacted markets throughout yesterday …
• Overall, the greenback was on the defensive …
• From a euro perspective, the currency was boosted by some hawkish ECB remarks …
• However, the euro handed back its gains later in the day …
• As trading gets underway this morning,  EUR/USD opens at the midpoint of $1.05-1.06 …
• GBP/USD is changing hands in the top half of $1.26-1.27 …
• EUR/GBP remains in the bottom half of 83-84p …
• Today, there is a busy data schedule in the Eurozone …

All rates quoted are indicative market rates.

The November meeting of the US Federal Reserve Open Market Committee (FOMC) saw the central bank cut interest rates for the second consecutive time. The target range for the Fed funds rate was reduced by 25bps to 4.50-4.75%. The decision by the FOMC to cut rates by 25bps was unanimous, following a split on the FOMC for September’s bumper 50bps cut.

The November meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank lower Bank rate by 25bps to 4.75%. This was the second rate cut from the Bank of England (BoE) in three meetings. Subsequent to this, the BoE cuts rates for the first time in August, following its rate tightening cycle, which had been in place since the end of 2021.