Pound Sterling (GBP)
The Pound remains steady this morning after last week’s Bank of England decision to cut interest rates in a very close 5–4 vote. That narrow outcome highlights just how divided policymakers are on the pace of easing. Recent figures showed the UK economy slowed less than feared in the second quarter, and pay growth is cooling, which may take some pressure off the Bank of England to move quickly. For now, markets are looking to this Wednesday’s inflation report and Thursday’s PMI business surveys for the next signals on how the outlook is shaping up.
Euro (EUR)
The Euro is holding its ground as the European Central Bank has signalled it is likely to stop cutting interest rates for the time being. Policymakers have signalled that it would take a strong shift in the data for them to act again soon, which is giving the common currency a measure of support. With little fresh news from the Eurozone overnight, attention is turning to upcoming inflation readings this week, alongside broader global developments, to guide trading direction.
U.S. Dollar (USD)
The Dollar has been largely steady in early trading today, with investors keeping their focus on the annual Jackson Hole gathering of central bankers later this week. That event is expected to provide clues on when and how quickly the Federal Reserve might cut rates. Geopolitical headlines, including planned Washington talks on Ukraine will be watched closely but so far they haven’t shifted overall market sentiment.