A quiet start to the week with no economic data due today.
There was a muted reaction from the FX market following yesterday’s announcement that Joe Biden will stand down in the race for the next president of the United States.
The selection of Joe Bidens replacement will be confirmed at the Democrat National Convention, which this year begins on August 19th. Bidens replacement on the ticket is highly likely to be Vice President Kamala Harris.
Last week, the pound hit highs against the dollar but has since declined following last week’s IT outage prompting investors to buy ‘safe haven’ dollars. With the glitch now fixed, there is a chance we could see some improving investor sentiment that can support the pound.
UK PMIs on Wednesday are the only significant risk for the pound this week.
For the US, the preliminary GDP figures will be closely watched ahead of this Fridays release of the PCE inflation figures, which the FED monitors closely when considering interest rate policy.
The pound has dropped against the euro over the past week, having hit fresh highs last Wednesday.
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