Published: 15/08/2024 By ECAP
GBP has shown a steady improvement through the week, following a tough start to August. This morning’s release of UK GDP data shows 0.6% growth between April and June; although in line with forecasts, the economic expansion did flatline to 0% in June, suggesting a lack of momentum towards the back end of summer.The EUR continues to show strength in the market, reaching 8-month highs against the USD, and showing a 0.9% improvement on the the week. Although a slight setback this morning against the GBP, the EUR is undoubtedly still in the driving seat for the time being.
Yesterday’s US inflation data showed a headline figure of 2.9%, taking it below 3% for the first time since March 2021. The core rate also fell, coming in at 3.2% vs the 3.3% previous figure. With inflation softening, the USD is paving way for further pressure from other majors – should future releases follow the same path, the market expects 100bps worth of cuts from the Federal Reserve this year.
Data supplied by GC Partners