Published: 02/08/2024 By ECAP
The British Pound traded in mixed fashion yesterday following the Bank of England’s decision to deliver a broadly expected 25-basis point rate cut. Nevertheless, even if the Bank of England cuts again in 2024, the UK will continue commanding an elevated interest rate relative to most G10 economies, boosting the appeal of Sterling-denominated assets and Sterling itself.The Euro is trading in a wide range this morning amid confirmation of ongoing weakness in the Eurozone’s factory activity. Moreover, signs of slack in the recently robust EU labour market weighed on the bloc’s single currency. Looking forward, European economic data remains thin for what’s left of the trading week, and next week sees little of note on the meaningful release side for the EU.
The U.S. Dollar was nursing some losses from earlier in the week after the Federal Reserve flagged the possibility of an interest rate cut in September. However, the greenback seems to be ending the week on a brighter note after rebounding in overnight trade, benefiting from safe haven demand. Focus is now squarely on today’s nonfarm payrolls data for more cues on the economy.
Data supplied by GC Partners