Loading…
The pound jumped as much as 0.7% after UK private sector activity data beat expectations. Traders pared bets on Bank of England rate cuts this year, and the 10-year gilt yield reached 4%.
Markets also priced fewer and later rate cuts.
Stronger UK activity and delayed easing support sterling and tighter monetary conditions, which can reduce the cost of dollar-linked feed imports for UK buyers. Pricing of fewer cuts is a currency and rates story rather than a feed supply event.
bloomberg.comAline Oyamada, Alice AtkinsJan 24, 2024Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
