SportsFX Currency Update, November 4th, 2024

The Overseas Athlete

In this conversation, Chris Broadfoot and Matt Phelan discuss various topics ranging from personal reflections on recent events to insights on market trends and economic outlooks. As we enter the final quarter of the year, significant economic events worldwide are shaping the currency landscape. From political shifts to central bank policies, these developments are worth watching for anyone earning or managing money internationally. U.S. Dollar (USD): Strengthened by high interest rates and demand for U.S. debt, the dollar remains strong. The November rate cut could moderate this but is unlikely to dramatically impact dollar strength before the year-end. Euro (EUR): The ECB has cut rates in recent meetings, with another possible cut in December. A U.S. tariff threat poses additional risks to the euro, as trade disruptions could weaken it further. Japanese Yen (JPY): Recent political uncertainty in Japan and high U.S. interest rates have led to significant yen depreciation, reaching levels last seen in July. British Pound (GBP): Post-budget, the pound dropped amid concerns over economic growth, and another rate cut is expected in November. Political shifts and economic pressures may keep sterling under pressure in the near term. Canadian Dollar (CAD): The Bank of Canada’s aggressive rate cuts have weighed on CAD, compounded by high U.S.-Canada interest rate differentials. The risk of further CAD depreciation remains as Canada navigates political tensions and economic adjustments. Australian Dollar (AUD): With U.S. rate hikes and tempered enthusiasm for China’s stimulus, the AUD retraced recent gains. Further softening in global demand could maintain this downward pressure. They also delve into the importance of currency management for clients, especially in the context of sports tours and upcoming major events like the 2026 World Cup. The discussion emphasises the need for proactive communication with clients and the significance of risk management strategies in navigating currency fluctuations.