GBP: As traders anticipate the BoE meeting on Thursday, the British pound has started this week’s trading session fairly flat. The dramatic tightening of monetary policy by the central bank is causing market investors to worry about the depth of their recession worries. Due to persistently high UK inflation, which remains the highest among the G7 economies, and labour shortages and rising food prices, the BoE is anticipated to hike interest rates for the fourteenth consecutive time.
EUR: After ECB President Christine Lagarde said that the tightening cycle could pause as early as September, the euro shook in early European trade this morning ahead of the release of important inflation and growth statistics for the eurozone. That notion was supported by the fact that June’s decline in German retail sales of 0.8% on a monthly basis indicated ongoing weakness in the eurozone’s largest economy.
USD: Although the U.S. Dollar has had a good start to the new week, it is still on track to post a monthly fall of about 1%, marking its second consecutive losing month. This comes after the Fed raised interest rates last week, although speculation is increasing that this might be the final increase in the rapid tightening cycle that has been going on for a year.
If you want to learn more about Capex Currency and how we can help your business, get in touch.
📱+44 (0)203 865 5780