- GBP: The GBP has experienced consistent improvement throughout the week after a challenging start to August. This morning’s UK GDP data revealed a 0.6% growth from April to June, aligning with forecasts. However, economic growth stalled at 0% in June, indicating a loss of momentum as summer progressed.
- EUR: The EUR remains strong in the market, reaching 8-month highs against the USD and showing a 0.9% increase for the week. Although it faced a minor setback against the GBP this morning, the EUR continues to hold a dominant position for now.
- USD: Yesterday’s US inflation data reported a headline figure of 2.9%, dropping below 3% for the first time since March 2021. The core rate also declined to 3.2% from the previous 3.3%. With inflation easing, the USD is opening up to further pressure from other major currencies. If this trend continues, the market anticipates 100 basis points of rate cuts from the Federal Reserve this year.