The Weekly Market Update
News & Insights
w/c 17th August: Data Dependent
GBP
The British Pound could strengthen if upcoming UK inflation and employment figures point to a resilient economy. Higher inflation may increase expectations of further Bank of England action, supporting the Pound. However, weaker retail sales could limit gains. Strong services activity may help offset any weakness, while the pound’s performance is likely to remain dependent on the UK’s economic data throughout the week.
EUR
The Euro remained subdued after weaker German wholesale prices and could face further pressure if economic sentiment deteriorates. However, comments from the European Central Bank and its latest meeting minutes could support the currency if they suggest further action. Softer Eurozone economic activity may limit any gains, particularly if upcoming business surveys point to weaker growth.
USD
The US Dollar has faced pressure as expectations of higher interest rates have weakened, with signs that inflation is easing. A sharp rise in longer-term US borrowing costs and a slump in retail sales have also weighed on the currency. However, ongoing Middle East uncertainty has provided some support. Investors will be watching Federal Reserve meeting minutes for clues about future interest rate decisions.
Stay ahead with our weekly market updates, delivered straight to your inbox.