Published: 24/07/2024 By ECAP
The British Pound was trading in mixed fashion yesterday as an ongoing lack of British economic data left the currency trading without a clear direction. However, UK PMI activity survey results will kick off today’s trading session, and investors are broadly expecting a recovery in July’s UK Services PMI. The data dipped to a seven-month low of 52.1 in June, and median market forecasts expect a rebound to 52.5.The Euro was undermined by the European Central Bank's downbeat view of the Eurozone's economic prospects and expectations that inflation would keep falling, which left the door for a rate cut in September wide open. In the meantime, today’s flash Eurozone PMIs will be looked upon for short-term volatility in the bloc’s single currency.
The U.S. Dollar rose slightly in Asian trade, extending an overnight rebound as souring sentiment towards China and uncertainty over the U.S. presidential race drove up safe haven demand. Investors were biased towards the dollar in anticipation of a Federal Reserve meeting next week. Markets will be watching for any signals that the bank will begin trimming rates from September.
Data supplied by GC Partners