Published: 02/09/2024 By ECAP
The British Pound snapped a three-day losing streak during the early Asian session this morning. However, in the absence of top-tier economic data releases from the UK this week, sterling is poised to follow global market dynamics. For now, investors are gaining confidence that the policy-easing cycle by the BoE will be gradual in the remainder of the year, which might support the British Pound.The Euro lost a bit of ground across the board last week after the August eurozone consumer inflation release confirmed signs of slowing inflation. In fact, Eurozone CPI stood at 2.2% in August, a drop from 2.6% the prior month. Ultimately, as the ECB started cutting interest rates in June, a sharp drop in inflation could likely prompt policymakers to cut once more in September.
The U.S. Dollar edged slightly higher on Friday and ended a five-week losing streak after GDP data showed the U.S. economy grew more than initially estimated in the second quarter. However, the U.S. currency is still confirmed to have dropped roughly 2.5% in August, as investors factored in the Federal Reserve starting a rate-cutting cycle in September.