Published: 15/07/2024 By ECAP
The British Pound rallied against a basket of currencies last week, settling near multi-month highs against the Euro and the Dollar. Looking ahead, the focus for GBP investors this week will be the latest UK inflation data, due for release on Wednesday. Should the UK’s CPI hold at 2% for a second consecutive month, increased expectations of an August rate cut from the BoE could see Sterling retreat from recent highs.The Euro reached its highest level in five weeks against the Dollar last Friday, but there is a possibility of a consolidative retreat in the coming days. In fact, the Euro's big test comes on Thursday when the European Central Bank makes its latest policy decision. No change to interest rates will be made, but markets will want to know whether the Bank will cut again in September. Should the ECB signal such a move, the Euro could come under pressure.
The U.S. Dollar caught some safe haven bids after the attempted assassination of former U.S. President Donald Trump over the weekend. Analysts anticipate that the shooting increased his chances of a victory over Joe Biden – a scenario that could eventually favour the dollar. Elsewhere, the greenback is also set to take more cues from Fed Chair Jerome Powell later this week.
Data supplied by GC Partners