Since UK markets were closed yesterday due to the Summer Bank Holiday, the British Pound was comparatively unchanged. Ben Broadbent, the deputy governor of the BoE, made some hawkish remarks, nevertheless, which appeared to support the British Pound. In fact, at the Jackson Hole Symposium, BoE’s Broadbent acknowledged the necessity for higher rates due to mounting wage pressure.

Following recent losses, the Euro was able to keep its ground as French Finance Minister Bruno Le Maire ruled out any imminent interest rate cuts. Furthermore, ECB President Christine Lagarde said that the fight against inflation is still ongoing at the Jackson Hole Symposium. Market investors will now keep an eye on the most recent statistics from the Eurozone for any potential resurgence.

A bullish risk tone pushed the safe-haven currency lower, as the US Dollar slipped off from an almost three-month high reached last week. Investors anticipate US data releases in the future in an effort to gain fresh perspective on the nation’s economic prospects. In fact, it is anticipated that these datasets will offer insightful viewpoints that could influence the price movement of the Dollar.

If you have any questions or concerns about how high-interest rates may impact your business, our Capex Currency team is here to assist you. Feel free to reach out to us for guidance and expert advice tailored to your specific needs.