Published: 13/08/2024 By ECAP
The pound plunged last week, following the Bank of England rate cut and the possibility of two more interest rate cuts before the end of the year. However the riots across the UK quickly shattered the narrative that the UK had returned to political stability following Labours election victory. This weeks economic release schedule shows a busy calendar, with the latest UK employment, wages, inflation and GDP data set to be released over the coming days.Announcements across Europe are also scheduled for today, with a focus on the German inflation figures, with a 66% probability of a rate cut on September 12th. Any further weakening of German inflation will increase these odds for the euro interest rate cut, which will be the first time since Covid. Following in the U.K’s footsteps.
We saw the paring of GBP/USD exchange rate plummet to a one-month low last week, before clawing back some losses, amid a global market selloff, UK civil unrest, and rising Bank of England (BoE) interest rate cut bets. This weeks economic data will determine the movement on the pairs outlook.
Data supplied by GC Partners