FX Guys

Pound to Euro Rockets to 2-Month Best as Snap UK General Election Called

May 23, 2024 – Written by David Woodsmith

Although the UK inflation rate declined sharply for April with the lowest headline reading for close to three years, the decline was smaller than expected and services-sector inflation remains notably stubborn.

Markets considered that the chances of a June rate cut had dipped to below 20% from 50% ahead of the data. The chances of an August cut dipped below 50% and traders are now fully pricing in only one rate…
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