Daily FX Report – Dollar Remains Under Pressure

  • GBP: The UK economy saw a boost in July, with retail sales growth aligning with expectations. This marks a strong recovery from June’s numbers and adds to the positive economic outlook, reinforced by yesterday’s encouraging GDP data. Next Thursday will offer more insights for the market with upcoming manufacturing and services PMI reports.
 
  • EUR: In the Eurozone, no major developments occurred after the public holiday, and the Euro continues to be influenced by movements in other currencies. It struggled to maintain earlier gains due to positive data from the UK and US. With no new data, markets are focusing on risk sentiment.

 

  • USD: The Dollar has faced downward pressure in recent weeks due to economic slowdown and anticipation of the Federal Reserve cutting rates in September. A weak labour market and political uncertainty weigh on the outlook, though resilience has been seen with strong retail sales and easing recession concerns. Two US reports are due today—Housing Starts and Building Permits—but significant market moves are unlikely unless the results deviate greatly from expectations.