Market Report : 23.07.2024

Published: 23/07/2024 By ECAP

The British Pound continues to find support as increased expectations of the Bank of England keeping interest rates elevated for longer support the risk sensitive currency. Turning to the economic calendar, UK PMIs are the only significant calendar risk for the British Pound and are due to be released during tomorrow’s trading session.

The Euro has been holding its ground as meaningful data remains limited for the first half of the trading week. This leaves investors shuffling in place, waiting for tomorrow’s key European PMI figures. The data for July is expected to slightly increase, with MoM Services PMI numbers projected to be at 53.0 compared to the previous month’s 52.8.

The U.S. Dollar retreated as the greenback’s rebound was held back by continued expectations of interest rate cuts and uncertainty over the 2024 presidential election. In fact, the dollar was nursing steep losses in recent weeks amid growing conviction the Federal Reserve will cut interest rates in September. For now, the central bank is set to keep rates unchanged at its meeting next week.

Data supplied by GC Partners