The Weekly Market Update
News & Insights
w/c 3rd August: Data Dominates
GBP
The British Pound recovered after last week’s Bank of England decision and reassurance over the UK government’s fiscal plans, despite limited support from domestic data. This week, attention turns to UK services PMI figures, with confirmation of renewed sector growth likely to underpin the Pound. However, limited UK data later in the week could leave the Pound vulnerable, while weaker German economic releases may provide additional support.
EUR
The Euro was supported by stronger German business sentiment and firmer inflation data last week, although geopolitical tensions capped gains. This week, attention turns to the final services PMI, with confirmation of renewed growth likely to bolster the single currency. However, weaker German factory orders, retail sales and industrial production could weigh on the Euro and limit further upside.
USD
The US Dollar weakened last week after the Federal Reserve left interest rates unchanged and softer economic data reinforced expectations that policymakers may delay further tightening. Slower GDP growth, cooling inflation and improving market sentiment reduced demand for the safe-haven currency. This week, attention turns to US labour market data and ISM surveys, which could determine whether the Greenback extends its losses or stabilises.
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