Market Report : 31.08.2023

Published: 31/08/2023 By ECAP

The British Pound has been struggling to find a clear direction as of late due to mixed economic data. Looking forward, comments from the BoE Chief Economic Huw Pill will be important as policymakers have recently been struggling to strike a balance between the higher inflation and softer economics from the UK.

The Euro gained some ground yesterday as higher than expected inflation numbers in Germany and Spain raised the pressure on the European Central Bank to keep lifting interest rates. Looking forward, investors will be focusing on eurozone CPI data for further clues as key central bank policy meetings draw nearer.

The greenback has weakened this week, pulling back from a near three-month high, on indications of cooling spending and hiring in the U.S. The focus is now squarely on personal consumption expenditures and nonfarm payrolls data, due later in the session and then on Friday, for more cues on the U.S. economy and monetary policy.