Daily FX Report – Dollar Remains Supported

GBP: The British Pound gained slightly at the end of last week as GBP investors reacted positively to the latest UK GDP data, which revealed that the UK economy grew in August for the first time since May. Looking ahead, Bank of England official Dhingra is scheduled to speak later this morning and may offer additional insight into the BoE’s potential rate cut plans.

 

EUR: Meanwhile, the Euro started today’s trading session on a weaker note, weighed down by increasing uncertainty surrounding the Eurozone’s economic outlook. EUR investors are growing concerned about a possible recession, driven by declining consumer activity across the bloc. Market participants are now eagerly anticipating Thursday’s ECB policy meeting.

 

USD: The U.S. Dollar strengthened against its major counterparts last week, with the USD Index rising for a second consecutive week, amid expectations of a slower pace of rate cuts by the Federal Reserve. This morning, the dollar firmed slightly, with attention turning to a series of Federal Reserve speakers throughout the week for further guidance on interest rates.