Daily FX Report – Dollar Remains Supported

GBP: The British Pound got off to a poor start this week, amid growing bets the Bank of England will cut interest rates at a faster pace than previously thought. Following some particularly dovish comments from BoE Governor Andrew Bailey last week, some analysts suggest that there is support within the bank for consecutive rate cuts in November and December.

 

EUR: The Euro continued to edge lower yesterday after German factory orders slumped 5.8% on the month in August; another illustration of the economic difficulties the eurozone’s largest economy is struggling with. Looking forward, Eurozone retail sales for August are due later in the session and should show how consumers are faring during these tricky times.

 

USD: The U.S. Dollar stabilised during yesterday’s trading session, holding onto the gains seen after Friday’s strong jobs report. In fact, the growth in U.S. payrolls quashed fears of an economic slowdown. Looking forward, focus this week is on addresses by a slew of Fed officials, more inflation data, as well as the minutes of the Fed’s September meeting.