Market Report : 06.08.2024

Published: 06/09/2024 By ECAP

Modest Support

The increasingly risk-sensitive British Pound was largely subdued yesterday morning amid a lack of fresh UK data and an uncertain market mood. In fact, with notable UK data in short supply, market risk dynamics will likely be the core catalyst of GBP movement. For now, tailwinds from Tuesday’s better than expected services PMI seem to buoy Sterling amid a lack of wider releases.

The Euro was marginally underpinned yesterday by the publication of Germany’s latest factory orders data for July. In fact, the index surpassed market expectations and fell from 4.6% to 2.9% rather than a more severe -1.5% expectation. This, in turn, has lent the Euro some modest support at the start of today’s trading session.

The U.S. Dollar continues to face headwinds prior to the latest batch of U.S. jobs data due tomorrow.  In fact, ahead of the market-moving releases, investors appear largely hesitant to place any aggressive bets on the greenback. Ultimately, amid rising concerns about the health of the US labour market, further signs of cooling in the sector could serve to dent USD.

Data supplied by GC Partners