GBP reaches 2 year high against USD
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Daily Currency Update
On Tuesday, the pound soared to its highest level against the US dollar in over two years, while the dollar dropped to a one-year low, reversing gains from the previous session. This shift in the currency market is driven by anticipation of key economic data due to be released this week and next.The fluctuations are largely attributed to expectations of upcoming U.S. interest rate cuts, which have recently exerted pressure on the dollar. Investors are increasingly convinced that the Federal Reserve will implement a rate cut at its September meeting, with speculation intensifying over whether the reduction will be 50 basis points rather than the more commonly expected 25.
Key Movers
The euro could weaken if Friday's data show a larger-than-expected drop in eurozone inflation for August. A significant decline might heighten expectations that the European Central Bank (ECB) will cut interest rates. Lower inflation could reduce the pressure on the ECB to keep rates high or raise them further.Expected Ranges
- GBP/USD: 1.3215 - 1.3285 ▲
- GBP/EUR: 1.1835 - 1.1895 ▲
- GBP/AUD: 1.9445 - 1.9515 ▲
- EUR/USD: 1.1135 - 1.1195 ▲