Data Heavy
GBP
The British Pound strengthened after revised figures showed the UK economy performed better than first estimated in the spring. The stronger growth has increased expectations that the Bank of England could raise interest rates again. However, with little major UK data due later this week, the Pound may find it harder to make further gains without additional signs of economic strength.
EUR
The Euro was subdued as weak German retail sales and a larger than expected rise in unemployment weighed on sentiment. Higher energy costs and ongoing economic uncertainty also remained concerns. However, the Euro could find support if upcoming inflation data shows a sharp increase, as this may strengthen expectations that the European Central Bank will raise interest rates again.
USD
The US Dollar weakened after the latest inflation figures came in below expectations, reducing expectations of another Federal Reserve interest rate increase. Although stronger economic growth offered some support, it was not enough to offset the inflation concerns. Looking ahead, stronger US manufacturing activity could help the Dollar recover, while investors are also awaiting important jobs data for further clues about the economy.
If you would like to discuss your exchange rates, have any questions about the market or would like to learn more about how we could help, please get in touch.
T: +44 203 440 7550 | E: info@spectrumfx.co.uk | W: www.spectrumfx.co.uk
