Published: 29/08/2024 By ECAP
The British Pound retraced part of its recent gains against the U.S. Dollar yesterday, falling back from 29-month highs touched on Tuesday despite no major market-moving news being released. Looking forward, UK economic data remains thin on the ground today, potentially leaving the pound without a strong directional bias.The Euro lost a bit of ground yesterday as a lack of data pulled shifting interest rate cut speculations into view. In fact, as a growing number of ECB policymakers affirm that the conditions to reduce rates next month are being met, the bloc’s single currency struggles to attract investor support.
The U.S. Dollar’s rebound stalled ahead of key economic readings that are likely to factor into the outlook for interest rate cuts. In fact, focus turns to a revised reading on GDP data for the second quarter, due later today, for more insight into the U.S. economy. Moreover, PCE price index data – the Fed’s preferred inflation gauge – is due tomorrow.
Data supplied by GC Partners