Published: 30/08/2024 By ECAP
The British Pound eased off from recent highs as investors turned their attention to UK Chancellor Rachel Reeves’s upcoming budget. In fact, Sterling sentiment weakened as investors speculated on how expected tax and spending cuts may impact the government’s plans to boost UK economic growth. Elsewhere, the BoE will publish its latest consumer credit figures this morning. However, the mid-tier UK economic release may have minimal impact on the pound.The Euro trended lower yesterday after preliminary data from German states pointed to a drop in national inflation this month, as well as the wider eurozone number. Looking forward, Germany publishes its national figures later in the session, before the eurozone inflation data release, which is expected to fall to 2.2% in August, down from 2.6% in the previous month.
The U.S. Dollar has recovered from recent lows, helped by its safe-haven status on the back of fears of renewed trade tensions between China and the West as well as heightened geopolitical concerns in the Middle East. However, the U.S. currency remains under pressure given the prospect of lower U.S. rates next month, with the Federal Reserve set to reverse its aggressive tightening cycle which had supported the greenback for most of the last two years.
Data supplied by GC Partners