Market Reports : 14-08-2023

Published: 13/08/2023 By ECAP

The British Pound showed a sub-par performance last week due to disappointing retail sales figures but managed to recoup some losses after a surprising GDP growth. Looking forward, the UK is set for a week full of new data, with CPI and unemployment figures taking the spotlight. These key data points will be a determining factor of whether the Pound continues to recover its past months losses, or if additional setbacks are in motion.

The Euro finished last week on the backfoot, falling against the US Dollar and has continued its losing streak in early Monday morning trading. The Euro did manage to recoup some of its midweek losses against GBP, however this week is likely to bring increased volatility between the two currencies due to EU GDP figures being released on Wednesday. This data is likely to influence the direction the Euro trades against GBP into the end of the month and beyond, with investors eagerly waiting to see how both economies compared during the second quarter of the year.

Last week the US Dollar continued gaining on the British Pound, extending its month long streak. Retail sales figures are set to be released on Tuesday which could bring another wave of USD strength, however, investors will be keeping a keen eye on the FED Minutes to provide additional insight to the next interest rate decision in September.