GBP: The British Pound is poised to reach its best levels since 2022 after rising against the Euro for six weeks in a row. The latest action was taken after traders reduced their bets for a rate cut in May. Going ahead, no front-line data is scheduled, but the Bank of England is still in the spotlight as Breeden, Dhingra, and Mann, members of the Monetary Policy Committee, are scheduled to speak.
EUR: The macroeconomic problems facing the region have caused the Euro to lose a lot of territory. In the three months leading up to December, the German economy shrank by 0.3%, but EU growth remained steady during that time. Investors will be watching the January Composite PMI from Germany, the Eurozone, and Spain as well as the German Trade Balance going forward.
USD: The robust employment market data from Friday and the Federal Reserve’s hawkish comments last week caused investors to rethink their bets on early interest rate cuts, and as a result, the U.S. dollar steadied at a nearly two-month high. In fact, according to Fed Chair Jerome Powell, the U.S. economy’s resiliency allowed the Fed greater leeway to maintain stable monetary policy going forward.
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