Sterling traded higher against the U.S. dollar on Wednesday, as the greenback continues to weaken as a result of rising expectations of a Federal Reserve rate cut in the first half of 2024.
The British pound was up 0.06% at $1.27 at 7:15 a.m. London time.
The pound, along with the euro, yen, Australian dollar, yuan and Swiss franc, all marked fresh multi-month highs against the U.S. dollar during early trade, according to Reuters data.
The ICE dollar index, a measurement of the greenback against a basket of currencies, has fallen sharply this month.
Investors are near-certain the Fed will hold rates at its next two meetings, while markets have now priced in a 43% probability of a cut in March and a more than a 50% probability of a trim in May, according to the CME’s FedWatch Tool.
U.S. dollar index
CNBC Pro: Citi is so bullish on this biotech stock it gives it 800% potential upside
Citi is so bullish on one biotech stock that it has given the company a target price that represents around 800% upside.
Citi isn’t alone in its bullishness on the company. According to FactSet, analysts covering the stock give it average price target upside of 385% and a buy rating of 88%.
BMO Capital Markets in a Nov. 16 note said it expects biotech stocks to outperform in the next six to 12 months.
CNBC Pro: With geopolitical tensions mouting, Bernstein expects 3 defense stocks to soar 20%
Mounting geopolitical threats in the Asia Pacific region have beefed up the defense budget of countries around the world — and AllianceBernstein has named its overweight-rated stocks to play the theme.
“The epicenter of global defense and security has been moving toward Asia Pacific in recent years, prompting [the] U.S. and major European nations to gradually shift their security focus eastward,” analysts at the global asset management firm wrote in a Nov. 27 note to investors.
“The rising geopolitical threats in APAC has been a driver of military spending for the Western nations. In addition, APAC countries have become more important for their own military expenditures, which present some opportunities for Western defense contractors through either exports or partnerships.”
European markets are heading for a mixed open Wednesday.
The U.K.’s FTSE 100 index is expected to open 16 points lower at 7,441, Germany’s DAX up 17 points at 16,004, France’s CAC up 2 points at 7,252 and Italy’s FTSE MIB up 3 points at 29,410, according to data from IG.
Preliminary inflation data for Germany and Spain for November are due.