USD edge away from 5-week lows
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Daily Currency Update
The US dollar edged away from five-week lows against the pound as investors evaluated the likelihood of a rate cut in September following comments by Fed Chair Jerome Powell. Powell's remarks highlighted a cooling labour market and improved inflation, hinting at a potential easing of monetary policy.Additionally, market sentiment was influenced by the increasing odds of former US President Donald Trump securing re-election, adding another layer of uncertainty and speculation to the dollar's performance.
Key Movers
In Europe, investor attention will be focused on the European Central Bank's policy meeting on Thursday. While the ECB is expected to maintain current interest rates, market participants will closely scrutinize comments from ECB President Christine Lagarde. Her remarks will be pivotal in providing insights into the central bank's future monetary policy, particularly regarding the timing of the next potential rate cut.Investors will be seeking any indications from Lagarde about the ECB's assessment of economic conditions and inflation trends, which could signal when the next rate cut might occur.
Expected Ranges
- GBP/USD: 1.2925 - 1.2995 ▲
- GBP/EUR: 1.1855 - 1.1935 ▲
- GBP/AUD: 1.9205 - 1.9265 ▲
- EUR/USD: 1.0865 - 1.0935 ▲