- GBP: The British Pound remains relatively muted this morning against the Euro due to a lack of new UK economic data although it has gained against a weaker Dollar. With limited macroeconomic reports, speculation about potential Bank of England (BoE) interest rate cuts continues to influence GBP movement. Investors remain divided on the likelihood of another BoE rate cut next month, following the close-call decision to begin cutting rates earlier this month.
- EUR: The Euro has risen about 2% against the U.S. Dollar this month, heading for its best monthly performance since November. However, it faces challenges as signs of slowing inflation in the Eurozone’s largest economy emerge. The Eurozone’s consumer price index was confirmed at 2.6%, showing that inflationary pressures remain moderate.
- USD: The U.S. Dollar declined yesterday, nearing seven-month lows as expectations grow that the Federal Reserve will cut interest rates in September. The Fed has kept its benchmark interest rate in the 5.25%-5.50% range since last July, and investors have now fully anticipated a 25-basis point rate cut from the Fed in September.