GBP: The British Pound remained in a narrow range at the conclusion of last week, consolidating some recent gains. For the time being, the Pound is expected to trade sideways as GBP investors await significant UK economic data, which is due later this week. In particular, UK inflation data is due on Wednesday and will be widely scrutinised. The Bank of England’s interest rate decision is due on Thursday; analysts appear to expect rates to remain unchanged, therefore the market will likely focus on the Monetary Policy Committee’s vote split.

EUR: The Euro had a mixed performance on Friday as traders assessed the ECB’s recent rate cut and weak Eurozone industrial production figures. However, its negative correlation with a weaker U.S. Dollar provided some support. The ECB Governing Council have said they will continue to make decisions based on economic data and are taking a meeting-by-meeting approach. This week, EUR investors will turn their attention to Germany’s latest ZEW economic sentiment index.

USD: The U.S. Dollar edged lower this morning, continuing its recent losing streak as markets anticipate an expected interest rate cut this week. The Federal Reserve is widely forecast to lower rates at the conclusion of its meeting on Wednesday, though opinions are divided on the extent of the cut. Investors are roughly pricing in a 50% probability of a 50-basis point cut and a 50% probability of a 25-basis point cut.