Dear Reader,

Today's overview of economic news and market action

• • Somewhat muted tone to investor sentiment yesterday
  • Against the backdrop of a sparse data calendar
  • Main equity indices posted modest gains
  • Currency-wise, the majors operated within narrow ranges
  • EUR/USD opens this am in the upper half of $1.04-1.05
  • EUR/GBP is trading in and around the midpoint of 83-84p
  • Today’s macro diary is US focused, with consumer confidence and Fed minutes due

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.