Data Driven
GBP
The British Pound weakened as expectations for UK interest rate increases faded, leaving the Pound with less support. With UK markets closed for the bank holiday, trading was quieter than usual. Attention now turns to UK economic figures and comments from the Bank of England, which could influence confidence in the Pound over the coming days.
EUR
The Euro gained support as expectations for higher interest rates strengthened. German inflation picked up, while rising energy costs added to price pressures. Markets increasingly expect the European Central Bank to take a tougher approach, giving the Euro a stronger outlook. Attention now turns to upcoming inflation and economic data, which could determine whether this support continues in the near term.
USD
The US Dollar strengthened last week after Federal Reserve Chair Kevin Warsh highlighted ongoing concerns about inflation. This increased expectations that US interest rates could rise, although markets remain divided over whether this will happen. The Dollar has since eased slightly as traders await key economic data. This week’s US employment figures will be especially important, with stronger hiring likely to support the Dollar further.
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