Published: 05/06/2024 By ECAP
The increasingly risk-sensitive British Pound is struggling against its safer rivals this morning, falling flat against its Euro counterpart amid a cautious market sentiment and some lacklustre data. Looking forward, the UK’s economic calendar lacks top-tier events this week. Therefore, any potential movement will be guided by global market dynamics.The Euro opened today’s session relatively flat as investors remain extremely cautious ahead of tomorrow’s European Central Bank meeting. Although a cut of 25-basis points is completely discounted, any other decision will be a huge surprise and could create a lot of disruption and volatility in the market. Ultimately, the key piece of information will be whether the ECB provides any clues on future rate cuts and timings.
The U.S. Dollar recouped some ground following a steep fall during Monday’s trading session as PMI data showed manufacturing activity contracted for a second straight month in May. In fact, the reading pointed to more cooling in the U.S. economy, and saw investors ratchet up bets that the Federal Reserve will begin cutting rates in September. Looking forward, key labour data, particularly nonfarm payrolls, is due this Friday and set to offer more cues on rates.
Data supplied by GC Partners