Market Report : 08-08-2023

Published: 08/08/2023 By ECAP

The British Pound seems to be stabilizing after its recent losses over the past few days as market participants await UK’s Q2 GDP figures for fresh impetus. On that note, a stalling of the UK economy in the second quarter could weigh heavily on Sterling as higher interest rates by the BoE have deepened recessionary fears.

The Euro was buoyed by Eurozone data as investors digest the latest German inflation indications in the wake of disappointing Chinese trade data. In fact, the annual figure fell to 6.2% from 6.4% the prior month, something that could persuade the ECB to pause its prolonged tightening cycle at its next policy meeting in September.

The Dollar firmed in Asian trade, extending overnight gains as markets positioned for a potentially stronger consumer price index reading this week. Moreover, some hawkish comments from Federal Reserve officials also aided the greenback, as Fed Governor Michelle Bowman said that more rate increases will be needed to curb high inflation.