The Weekly Market Update
News & Insights
w/c 18th August: Data Determines
GBP
The Pound found support from stronger than expected UK GDP data, signalling near term resilience. However, analysts caution that slowing growth, inflation pressures and fiscal risks could weigh on it. While delayed rate cut expectations offer short-term backing, questions remain over the Bank of England’s strategy. Overall, this coming week’s UK data releases will be critical in shaping the Pound’s direction amid ongoing economic and policy uncertainty.
EUR
The Euro remains under pressure due to weak trade conditions, soft economic data, and persistent geopolitical uncertainty, particularly the ongoing war in Ukraine. Markets continue to monitor the conflict, which limits investor confidence and Euro support. Upcoming Eurozone CPI and PMI data will be critical; any signs of weakness could reinforce expectations of ECB rate cuts. Overall, without economic improvement or progress in Ukraine, the Euro’s outlook remains fragile.
USD
The U.S. Dollar strengthened as recent strong U.S. data reduced expectations of aggressive Federal Reserve interest rate easing. Robust producer prices, retail sales, and manufacturing indicators point to persistent inflation and economic resilience, supporting a cautious Fed stance. Overall, market focus remains on the Ukraine talks, with unclear outcomes keeping traders cautious and impacting risk sentiment.
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