Market Report : 05.08.2024

Published: 05/09/2024 By ECAP

The British Pound continues to be underpinned by expectations that the Bank of England's rate-cutting cycle is more likely to be slower than in the Eurozone or the United States. The bets were lifted by a survey from the British Retail Consortium, which showed that spending in August increased by 1.0% YoY – marking the strongest uptick since March.

The Euro has been holding its ground even though the near-term outlook remains downbeat as market participants expect that the ECB’s policy-easing cycle could be aggressive given the steep decline in Eurozone inflationary pressures and weak economic growth. Looking forward, European Retail Sales remain the sole key data print scheduled for today.

The U.S. Dollar's decline is gaining speed as anticipated interest rate cuts by the Federal Reserve threaten to end the greenback's years-long period of strength. In fact, the dollar has fallen 5% from its 2024 highs, close to its lowest level in about a year against a basket of its peers following a sharp drop last month.

Data supplied by GC Partners