Gentium FX | Daily Report - 23rd August 2023 - Jackson Hole Symposium Takes The Spotlight

GBP: Sterling maintained its impressive performance over the past week, driven by favourable public finance data provided by the Office for National Statistics (ONS), which exceeded expectations. This positive outcome, coupled with reduced levels of government borrowing, has led to discussions about the possibility of the government implementing tax reductions in the budget scheduled for November. This potential move is seen as a way to bolster the value of the British Pound (GBP). In the near future, the focus is on the Bank of England (BoE) and their decision regarding whether to continue raising interest rates.

EUR: The general consensus is that the economy of the Eurozone has found stability during the second quarter, as there were no significant changes in inflation numbers. Additionally, Eurostat's data on the expansion of the Euro Area, which is another way to gauge inflation, showed a slight increase. This positive performance puts the Euro in a favourable position for the upcoming weeks. However, the focal point will shift to the relationship between economic data from the Eurozone and China's currency policy as the Jackson Hole symposium begins on Thursday.

USD: In terms of data, the US experienced a relatively uneventful day, with the exception of preliminary PMI figures that usually don't lead to significant market shifts. The focus will shift to Jackson Hole, Wyoming, where economists and central bankers will convene for their yearly symposium. Investors will be seeking hints about the Federal Reserve's impending choice on potential interest rate hikes, as well as insights into China's currency policy, which could impact a variety of currencies.

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