Published: 06/08/2024 By ECAP
The British Pound continues to falter after the Bank of England decided to cut its interest rates by 25-basis points last week. BoE governor Andrew Bailey noted that the rate decision will be decided from meeting to meeting, but market players expect the UK central bank to deliver more rate cuts in September. In fact, the chance of a cut at its next meeting in September is seen as a nearly 55% probability.The Euro was bolstered by recent upbeat German economic data. Looking forward, the economic calendar remains thin overall for the trading week, though European Retail Sales will be one last speedbump for the bloc’s single currency before markets can fully settle in for the long wait to September. If the retail sector in the Eurozone shows improvement, this could lift the Euro against its peers.
The U.S. Dollar fell across the board as the incoming softer US macro data fuelled worries about a downturn in the world's largest economy and raised expectations for a possible emergency intervention by the Fed. For now, broad-market expectations for rate cuts from the Federal Reserve have run well ahead of the curve, with investors hoping for an initial double-cut from the Fed in September.
Data supplied by GC Partners