The British Pound broke a three-day losing streak in the early Asian session today. With no major UK economic data releases this week, sterling is expected to follow global market trends. Investors are optimistic that the Bank of England’s policy easing will be gradual for the rest of the year, potentially supporting the Pound.
The Euro weakened slightly last week after the August eurozone consumer inflation data confirmed slowing inflation. With CPI at 2.2% in August, down from 2.6% in July, further rate cuts by the ECB in September could be on the horizon.
The U.S. Dollar ended a five-week losing streak on Friday, bolstered by stronger-than-expected Q2 GDP growth. However, the USD still fell by around 2.5% in August, as markets anticipate the Federal Reserve’s potential rate-cutting cycle starting in September.
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