Uncertainty surrounds future BoE interest rate increases
Daily Currency Update
On Friday, the Office for National Statistics (ONS) released data indicating a decrease of -1.2% in the monthly UK Retail Sales for July. This was more significant than the anticipated drop of -0.5%. Furthermore, the yearly retail sales figure experienced a decline of -3.2%, in contrast to the projected -2.1%.Market sentiment continues to suggest that the Bank of England (BoE) will persist with its tightening policies. However, there exists apprehension surrounding the possibility of an aggressive interest rate hike by the BoE. This concern has the potential to exert downward pressure on the Pound, driven by investor worries about its potential adverse effects on the UK economy.
Key Movers
In the upcoming week, we can expect the release of the Eurozone Current Account, PMI figures, and German Q2 GDP data. For the UK, the preliminary S&P PMI data for August is scheduled for Wednesday. These statistics could play a vital role in shaping the direction of the GBP/EUR for the weekExpected Ranges
- GBP/USD: 1.2705 - 1.2795 ▲
- GBP/EUR: 1.1675 - 1.1745 ▲
- EUR/USD: 1.0835 - 1.0905 ▼