Spectrum FX Daily Report

GBP: The British Pound managed to gain ground against its weaker rivals yesterday, despite a lack of high-impact economic data. The only UK release was the final services PMI, which printed in line with preliminary estimates to show a slowdown in activity. However, a generally upbeat outlook for the UK’s vital services sector seems have supported the Pound. Looking forward, today’s economic calendar is quite thin which could leave the Pound to trade without a clear direction.

EUR: The Euro faced some selling pressure yesterday, with the currency struggling to attract support ahead today’s ECB meeting. The European Central Bank is set to cut borrowing costs for the euro area for the first time since September 2019. However, with markets regarding a first rate cut as a given, investors will be intently looking for clues from ECB president Christine Lagarde to the future path of monetary policy.

USD: The U.S. Dollar saw renewed weakness yesterday after soft ADP employment data pointed to further cooling in the labour market. Moreover, the reading came after a soft job openings print, and also set the stage for a soft Non-Farm Payroll reading on Friday. Other economic indicators also pointed to some cooling in the world’s biggest economy, which could present a softer outlook for inflation and give the Fed more confidence to begin cutting rates.

For a live rate or to book a trade please contact us.

T: +44 203 440 7550 | E: [email protected] | W: www.spectrumfx.co.uk