Daily FX Report – Key Data Calms Market

GBP: The British Pound generally kept most of its strength during yesterday’s trading session following the release of the UK’s finalised manufacturing PMI data for August. The index confirmed that the sector remained in expansion territory, with a score above 50, and matched market expectations at 52.5, reaching a level not seen in over two years.

 

EUR: The Euro remains relatively unchanged, as Eurozone manufacturing activity continued to contract in August. The final Eurozone manufacturing PMI came in at 45.8, well below the 50 mark that separates growth from contraction. Looking ahead, EUR investors are likely to focus on the Eurozone’s upcoming GDP report this week. If the second quarter’s 0.3% growth is confirmed, it could provide some support for the Euro towards the end of the week.

 

USD: The U.S. Dollar experienced a slight decline but remained near its highest level in nearly two weeks. Investors are now turning their attention to the upcoming U.S. jobs report, which is due at the end of the week. This report is expected to be crucial in influencing the Federal Reserve’s monetary policy, particularly after Fed Chair Jerome Powell indicated a shift from focusing solely on inflation to also considering job losses.