Dear Reader,

Today's overview of economic news and market action

• Cautious mood to investor sentiment yesterday
• Currency-wise, the action was within relatively narrow ranges
• The euro was on the defensive
• At the same time, the dollar registered some modest gains
• EUR/USD opens this morning in the lower half of $1.05-1.06
• EUR/GBP is trading below the midpoint of 83-84p
• Today’s macro highlights are EZ consumer confidence (Nov) and US existing home sales (Oct)

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.