Market Report : 25.08.23

Published: 24/08/2023 By ECAP

Sterling experienced a volatile week climbing and falling against both the Euro and US dollar. The Pound began Monday trading on bullish sentiment, gaining until mid-week PMI data was released, showing the UK economy has continued to contract, causing losses on both the USD & EUR front. GBP has opened this morning’s trading session attempting to recoup some of those losses.

The Euro started this week’s trading session with mixed signals, falling against the Pound & strengthening against the Dollar. Euro’s slow trading continued until weak PMI data was published on Wednesday, causing the currency to flip positions and recoup the majority of its losses against Sterling and tumble against the US Dollar. The Euro has opened this morning’s trading session under selling pressure for the second day running as traders wait for ECB President Lagard’s speech at the Jackson Hole symposium.

The US Dollar started this week on the back foot with slow trading and minimal movement. The Dollar closed at its highest against the British Pound since mid-June. USD gained close to 1% in one of the best 24-hour periods since the end of July. As the Jackson Hole symposium continues to take the spotlight in US finance news, US retail traders continue to show their bullish stance against the Pound. A similar story can be seen against the Euro, as USD continues its 2-day gain, bringing the Euro to its lowest level since early June.