Spectrum FX Weekly Report

GBP: The British Pound struggled to capitalize on Friday’s modest bounce, hovering near one-month lows against the U.S. Dollar. Nevertheless, market participants expect that more persistent price pressures in the UK might force the Bank of England to keep interest rates at their current level for a little bit longer. This, in turn, might hold back bearish investors from placing aggressive bets around the British Pound ahead of this week's release of the UK CPI report.

EUR: The Euro continues to be undermined by concerns that a snap election in France will worsen the fiscal situation in the Eurozone's second-largest economy, against the backdrop of a lead to the right-wing National Front party in the opinion polls. In fact, French Finance Minister Bruno Le Maire said on Friday that the country was at risk of a financial crisis if either the far right or left won because of their heavy spending plans.

USD: The U.S. Dollar rallied against a basket of currencies on Friday as market participants digested the Fed’s most recent meeting. In fact, the greenback stands near its highest level since early May touched on Friday in the wake of the Federal Reserve's hawkish surprise last week. Ultimately, in the so-called "dot plot", policymakers projected only one interest rate cut in 2024 as compared to three in March.

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