Previous Trading Days Events 19.06.2024

The pound appreciated after the U.K. CPI inflation data were released. British inflation returned to its 2 target in May for the first time in nearly three years, while the closelywatched services prices rose by 5.7 indicating that services inflation is high enough to cause doubts of a cut.

Markets priced in a 30 chance of a BoE first cut by August from around 50 before the data, while expecting 44 bps of monetary easing in 2024 from almost 50 bps before the data.

For now, we are sticking with our forecast that the bank will first cut interest rates from 5.25 in August, although that relies on better news on services CPI inflation and wage growth in the coming months, said Ruth Gregory, deputy chief economist at Capital Economics.

The big question is whether the bank sticks to previous guidance and primes the market for an August kickoff to a ratecutting cycle, said Jamie Dutta, market analyst at Vantage, after forecasting no decision on rates by the BoE on Thursday.

Source httpswww.reuters.commarketscurrenciessterlingedgesupafterukinflationdata20240619

Winners vs Losers

Silver climbed to the top of the list as metals showed remarkable momentum to the upside for the last couple of days. It has reached 3 performance this week so far. For the month AUDCAD is leading with 1.12 gains. The dollar remained stable yesterday but at low levels that were kept since the weak retail sales report.

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