GBP: After it was disclosed last week that UK inflation rates had significantly decreased in June, the British pound appears to be under pressure. Furthermore, these recent losses can reverse or pick up speed in the upcoming week. The results of several significant data events this week, which are a crucial factor in the movement of the foreign exchange market and a risk-sensitive currency like the British Pound, will support market expectations regarding the future for interest rates in major economies.
EUR: The euro maintained steady this morning as traders anticipated the European Central Bank meeting on Thursday, when policymakers were expected to raise interest rates by 25 basis points. Although the market has already factored in such an increase, it is the accompanying remarks from ECB President Christine Lagarde that the market is anticipating, particularly the message she sends for the September meeting given that eurozone inflation is still significantly higher than the central bank’s target.
USD: USD: Although losses are small as traders await information from a number of central bank meetings this week, with the Federal Reserve in particular attracting attention, the U.S. dollar slipped lower in the early European hours this morning. Although a 25-basis-point rate increase from the Fed is still largely anticipated, it is unclear whether the Fed will announce additional rate increases this year.
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