GBP The British Pound began the new week down nearly a month against a generally higher Dollar. In fact, the Pound to Dollar exchange reversed more than half of its second-quarter surge in July. In the coming days, price action will be a crucial indication of whether the broader rebound from last year’s record low has legs or if a further setback is on the way.
EUR The Euro is trying to find a clear direction as the global rating agency Fitch Ratings stated on Friday that declining Eurozone inflation puts the ECB in a difficult situation. In addition, signals that the German economy is still struggling may cause ECB officials to pause their tightening cycle in September.
USD The US dollar rose in early European trade this morning, recovering from losses on Friday’s jobs figures and ahead of this week’s inflation data release. In retrospect, the United States’ economy added fewer jobs than projected in July, causing the dollar to slump to a one-week low versus a basket of currencies. With the Fed clearly watching the incoming data ahead of the September policy meeting, the focus now shifts to Thursday’s US inflation figures for more guidance.
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