Published: 30/07/2024 By ECAP
The British Pound stumbled out of the gate yesterday as GBP investors showed concerns over the state of the UK government’s finances and worries about tax rises. The jitters came as Chancellor Rachel Reeves was set to address Parliament to outline the government’s fiscal plans. However, while the speculation drove some volatility in GBP, Cabinet Officer minister Pat McFadden said that people shouldn’t expect tax announcements, which eased investors’ fears somewhat.The Euro was unable to gain ground against a struggling Pound yesterday as a lack of Eurozone economic data left the common currency struggling to attract support. EUR investors may have been reluctant to place any aggressive bets on the single currency ahead of high-impact Eurozone data later in the week, including the bloc’s GDP figures for the second quarter and inflation data for July.
The U.S. Dollar recovered some ground as anticipation of a Federal Reserve meeting sparked some flows into the greenback, especially as investors speculated over whether the central bank will signal any rate cuts. For now, soft inflation readings and dovish-leaning comments from Fed officials saw markets ramp up bets that the Fed will cut rates by 25 basis points in September.
Data supplied by GC Partners