Pound Sterling (GBP)
GBP: Sterling is benefiting from euro weakness amid French political uncertainty. UK economic resilience, including recent GDP and retail data, supports the pound, though strategists caution gains may be limited later if the Bank of England turns dovish.
Euro (EUR)
EUR: The euro is under pressure as Prime Minister Bayrou faces a confidence vote on September 8, with opposition parties likely to block his government. Rising French debt yields and weaker stock markets add to caution, though strong July car sales (+7.4% EU, +5.8% eurozone, +11% Germany) show consumer resilience. ECB minutes are expected to have limited impact.
U.S. Dollar (USD)
USD: The dollar remains soft as short-term yields stay near lows and Fed uncertainty rises after Governor Cook’s removal. Inflation expectations are contained, and Treasury markets show little follow-through. Today’s GDP revision, jobless claims, and housing data may provide only a brief lift, while Fed Governor Waller could lean more dovish tonight, supporting downside pressure