- GBP: The British Pound continues to weaken after the Bank of England lowered its interest rates by 0.25% last week. Bank of England Governor Andrew Bailey mentioned that future rate decisions will be made on a meeting-by-meeting basis, but market participants anticipate more rate cuts in September, with a nearly 55% chance of another cut at the next meeting.
- EUR: The Euro gained strength due to positive economic data from Germany. The economic calendar for the trading week is generally light, with European Retail Sales being the last significant event that could affect the Euro before markets settle in for the period leading up to September. If the Eurozone’s retail sector shows improvement, it could boost the Euro against other currencies.
- USD: The U.S. Dollar weakened broadly as softer economic data in the U.S. raised concerns about a potential economic downturn and increased expectations for a possible emergency response from the Federal Reserve. Currently, there is strong market speculation about the Fed cutting rates, with investors hoping for a significant rate reduction in September.