The British Pound remains resilient in the face of faltering economic data. In fact, as wage growth and core inflation remain bugbears for the Bank of England, bets on two further BoE rate hikes have subsided. Nevertheless, a final 25-basis point rate hike is still on the table. Looking forward, BoE Governor Andrew Bailey will attend the Joint Treasury Select Committee Hearing on Wednesday, which could give the markets a sense of BoE policy intentions.
German exports decreased by 0.9% on a monthly basis in July as global demand remained weak, but the euro held steady in recent trading. Later in the session, ECB President Christine Lagarde is due to speak, and her words will be closely scrutinised for cues before this month’s policy-setting meeting.
In light of last week’s mixed U.S. jobs data and its potential effects on the Federal Reserve’s policy-setting meeting this month, the U.S. dollar slipped lower in early European trade this morning on light holiday-affected volumes. However, the Dollar Index was still near to its two-month high of 104.44 when it was last spotted trading at 104.08.
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