Spectrum FX Daily Report

GBP: The British Pound trended broadly higher yesterday, following the publication of the UK’s latest PMIs. July’s preliminary figures reported an acceleration of activity in both the manufacturing and services sectors, with the former seeing its strongest growth in two years amid a post-election surge in demand. Looking forward, UK economic data is in short supply and could lead the pound to trade sideways.

EUR: The Euro wobbled as a downbeat view of the Eurozone's economic outlook and rising expectations that the European Central Bank would cut more rates in September weighed on the bloc’s single currency. In fact, ECB vice president Luis de Guindos hinted at a possible interest rate cut in September as the central bank will have more information to reassess the monetary policy situation.

USD: The U.S. Dollar fell slightly in Asian trade, extending an overnight decline amid increasing confidence that the Federal Reserve will cut interest rates in September. Looking forward, Gross Domestic Product data for the second quarter - due later today, along with PCE price index data - due tomorrow, are expected to provide more cues on any potential rate cuts by the Fed.

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