Published: 08/12/2023 By ECAPThe British Pound has been consolidating its recent gains this week as the Bank of England looks set to stick to its tough line against talk of interest rate cuts in Britain. The continued hawkish stance comes as other leading central banks signal that they might be approaching a turning point in their fight against inflation.
The Euro gradually lost ground this week, driven lower by weakening economic data from the Eurozone and a dovish European Central Bank grappling with middling policy. In fact, eurozone GDP came in mixed whilst eurozone retails sales missed expectations. Ultimately, investors are finding little reason to bid up the Euro as economic data continues to sour for the European bloc.
The U.S. Dollar was relatively flat this morning as market participants digest a string of soft labour market readings this week. Looking into today’s trading session, the popularly known Nonfarm Payrolls (NFP) report will be looked upon for more cues that the historically tight labour market is loosening, which will reaffirm dovish Federal Reserve expectations.
Data supplied by GC Partners