Spectrum FX Weekly Report

GBP: The British Pound has declined for three weeks in succession but ultimately clings onto a broadly constructive setup. Today’s session kicks off with the finalised PMI results for the UK, which could see sterling gather support. Economic data for the UK then thins out through the rest of the week, which could leave the increasingly risk-sensitive Pound to be driven by market risk appetite.?

EUR: The Euros has been consolidating its recent moves as the bloc’s single currency scrambles to find a clear direction. In fact, there are no major data or calendar events to concern the Euro this week, but the fundamental picture is fluid: a global equity market selloff centred around fears for the U.S. economy is playing a significant role in the Euros price action.

USD: The U.S. Dollar fell across the board and hit its lowest level in 4-? months last week. In fact, the greenback saw little safe haven demand as worsening economic conditions in the U.S. saw investors begin pricing in the potential for an ever greater raft of interest rate cuts by the Federal Reserve. Investors are now pricing in a 74% chance the Fed will cut rates by 50-basis points in September, compared to prior bets on a 25-basis point cut.

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