The Weekly Market Update
News & Insights
w/c 10th August: Calmer Markets
GBP
The British Pound has remained fairly steady, supported by calmer financial markets and reduced concerns over government finances. However, its outlook remains challenging. Weaker UK economic growth, a softer labour market, slowing wages and easing inflation could limit the Pound’s strength. Expectations for fewer Bank of England rate increases may also weigh on sentiment. Fiscal pressures and concerns over the government’s future spending plans add further risks.
EUR
The Euro could remain relatively supported this week, helped by signs of improving economic activity. Stronger Eurozone industrial production and confirmation of economic growth could provide further encouragement. However, the currency has faced some setbacks, including weaker retail sales in June. Overall, the Euro may benefit if upcoming economic figures point to a strengthening regional economy and renewed confidence in its outlook.
USD
The US Dollar weakened last week as disappointing US employment data reduced expectations of higher interest rates. Earlier gains faded as economic activity slowed and hopes for improved global conditions boosted investor confidence. Looking ahead, cooler US inflation could put further pressure on the Dollar by reducing expectations for tighter Federal Reserve policy. Markets will closely watch inflation and labour market data for direction.
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