Spectrum FX Daily Report

GBP: The British Pound is seeing a steady decline after the BoE trimmed interest rates to 5.0%. With social unrest throughout the UK over the weekend and into the new week, investors are leery about the economic outlook for the kingdom. In fact, investors are paring back bullish bets on the Pound and waiting for signs of stabilization as well as a better read on how many more times the BoE will cut in 2024.

EUR: The Euro managed to retain some of Monday’s gains throughout yesterday’s session following some robust German data and ongoing market volatility. As market turbulence continued to lead investors towards more secure assets, the single currency’s safe-haven status leant EUR modest support. Additionally, the latest German factory orders data showed a significantly stronger than forecast rebound in June, rising by 3.9%.

USD: The U.S. Dollar firmed against the British Pound yesterday, though traded in a wide range against several peers as fears of a US recession failed to dissolve completely. Reassuring comments from Fed officials went some way to deter headwinds, yet markets refused to dismiss last Friday’s dismal nonfarm payrolls report. The economic calendar is notably thin this week, leaving markets to whittle away the hours until something structurally changes.

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