The announcement of UK GDP data for the second quarter of the year this morning left the British Pound comparatively unchanged. In the second quarter, the UK GDP increased by 0.5% quarter over quarter, which was little less than the 0.6% increase that had been anticipated. Looking ahead, this week’s movement in the Pound can be influenced by market risk dynamics as there aren’t any noteworthy UK economic announcements.
The likelihood that the ECB will lower interest rates again in October is growing, and this pressure is still on the Euro. In reality, the possibility of the third decrease in the ECB’s current cycle of policy easing has been strengthened by lower than anticipated inflation in France and Spain. Investors will probably keep an eye on a number of economic reports coming out of Germany in the future in order to get further indications.
On this final trading day of the third quarter, the US dollar is having difficulty finding buyers. For the time being, investors will be keeping a careful eye on a number of Federal Reserve authorities, including Chairman Jerome Powell, who will be giving speeches later today. Ahead of Friday’s non-farm payroll news, which is the week’s main event, U.S. PMI data will be made public on Thursday.
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