GBP Over the past month, the British pound has fallen in value relative to all of its G10 counterparts, with declines quickening in the prior week. In fact, the Sterling upswing in 2023 seems to have come to an end in tandem with the Bank of England’s cycle of interest rate increases. Regarding the data calendar, markets will be ready to react to risk-on or risk-off mood because the UK is expected to have a calm week.
EUR This morning, the euro was essentially flat as it continued to consolidate its recent movements. Future inflation data for the Eurozone, which is coming on Friday, will be closely watched in light of the ECB’s decision to stop raising interest rates in September. Keep in mind that German inflation is due the day before, and previous experience has shown market players that this can have a stronger influence because it frequently serves as a precursor to Friday’s release.
USD The Federal Reserve’s hawkish posture continues to be a strong support for the US Dollar, which is holding strong close to its highest level in more than six months. In fact, the Fed increased market expectations for at least one additional 25-bps rate hike before the end of the year by highlighting the need to maintain interest rates higher for longer to bring inflation back to the 2% target.
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