RegencyFX give their monthly update on developments in the foreign exchange markets. October 2024 saw a mixed performance for the GBP and EUR exchange rates, with both currencies experiencing fluctuations in value.

Sterling initially gained strength in the early part of the month due to positive economic data and expectations of a potential interest rate cut by the Bank of England. However, the currency’s momentum slowed down later in the month as the first Labour government budget for 14 years loomed large! Concerns about the UK’s public finances and the potential impact of tax increases weighed on sentiment.

In contrast, worries about the European energy crisis and the possibility of a recession caused the EUR to weaken during the first part of October. But as investors grew more upbeat about the Eurozone economy’s prospects, the currency gained some ground in the second part of the month.

The US dollar exhibited mixed performance throughout the month. While initial strength was attributed to safe-haven demand during periods of election uncertainty, subsequent weakness emerged due to concerns about a potential global economic slowdown and potential Fed rate cuts. The upcoming US presidential election on November 5th overshadowed October’s market movements. Both candidates’ stances on economic policy and international relations were closely watched, leading to increased volatility in the USD. Economic Data: Mixed economic indicators in the US contributed to the USD’s fluctuating strength. While some data points suggested a resilient US economy, others raised concerns about potential slowdowns.

Overall, the foreign exchange market in October was characterised by uncertainty and shifting dynamics, with currencies reacting to various economic and political factors. All eyes will be on the US for the presidential election on November 5th.

Currency ranges in October

GBP/EUR

High: 1.2044 on October 18, 2024

Low: 1.1843 on October 31, 2024.

GBP/USD

High: 1.3293 on October 2, 2024.

Low: 1.2859 on October 31, 2024.

GBP/AUD

High: 1.9874 on October 30, 2024.

Low: 1.9137 on October 3, 2024

EUR/USD

High: 1.1075 on October 2, 2024.

Low: 1.1075 on October2, 2024.

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