GBP
The Pound to Euro exchange rate has been contained within a narrow range and could remain so this week unless European inflation data surprises notably on the upside, or GDP to the downside, of expectations this Friday.
The two remaining candidates in the Conservative leadership contest to be the next PM, Rishi Sunak and Liz Truss, will face each other in a televised debate later today.
USD
This Weeks attention will be on the US Fed Meeting, which poses some event risks for the dollar. Interest rate differentials have been a key driver of the dollar’s recent strength. The Fed is expected to announce another 75bps rate hike.
EUR
The outlook for European economies has weakened considerably in recent months. The flash purchasing managers indices for July released today confirm that Europe is probably heading for a recession.
The German IFO survey will be closely watched as usual for the latest gauge of business sentiment in the Eurozone’s biggest economy. Last month’s headline business climate index fall was led by a particularly large drop in the forward-looking expectations component.
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