Daily FX Report – Volatile Markets

  • GBP: Last Friday, the British Pound saw a boost, rising by 0.5% following a recovery in UK retail sales for July. However, Sterling gave up much of these gains later in the day. Looking ahead, with minimal data releases early in the week, GBP exchange rates may lack clear direction until the release of the UK’s latest PMIs on Thursday.
 
  • EUR: The Euro continues to perform well against other currencies, supported by expectations that the European Central Bank will take a gradual approach to lowering interest rates. ECB President Christine Lagarde emphasized in her recent press conference that policymakers are not locked into a specific rate path, preferring a data-driven, meeting-by-meeting strategy.

 

  • USD: The U.S. Dollar slipped slightly last Friday, retracing some of the substantial gains from the previous session, as solid retail sales figures eased concerns about an impending U.S. recession. Looking forward, Federal Reserve Chair Jerome Powell is set to give a keynote speech at the Jackson Hole Symposium, which could lead to significant market volatility if he addresses U.S. monetary policy.