The British Pound has been falling for the past three weeks, but it eventually manages to hold onto a generally positive setting. The completed UK PMI data will be released at the beginning of today’s session, and this could lead to sterling strengthening. The UK’s economic data subsequently becomes less significant for the remainder of the week, which may cause the increasingly risk-averse Pound to be influenced by market risk appetite.
The Euro is struggling to find a clear path currently, therefore has been consolidating its previous gains. Although there aren’t any big data points or calendar events that should worry the Euro this week, the overall picture is still fluid because the price movement of the Euro is heavily influenced by a global equities market selloff that is concentrated around concerns about the U.S. economy.
The U.S. Dollar fell across the board and hit its lowest level in 4-½ month last week. In fact, the greenback saw little safe haven demand as worsening economic conditions in the U.S. saw investors begin pricing in the potential for an ever greater raft of interest rate cuts by the Federal Reserve. Investors are now pricing in a 74% chance the Fed will cut rates by 50-basis points in September, compared to prior bets on a 25-basis point cut.
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