Published: 11/07/2023 By ECAPThe British Pound hit a new 2023 high against the Dollar and was higher against the Euro after the latest U.K. employment data showed that average earnings rose at a record 7.3% in June. Ultimately, this puts further pressure on the Bank of England to continue tightening interest rates with U.K. inflation already at the highest levels in the G7.
EUR: The Euro rose to a two-month peak against the U.S. Dollar and held its ground against a basket of currencies after German inflation rose in June, climbing to 6.4% from 6.1% the prior month, interrupting a steady decline since the start of the year. Thus, leaving room for further rate hikes from the ECB.
USD: The U.S. Dollar slipped to a two-month low this morning on growing expectations that the U.S. Federal Reserve is nearing the end of its tightening cycle. In fact, several Fed officials said that the end to the Feds current monetary policy tightening cycle is getting close.