Market Focus Shifts to US and EU Economic Data as UK Stays Quiet
With no major UK data releases on the calendar today, attention turns to the US and European Union for key economic updates.
In the EU, Consumer Confidence for July is expected to decline, adding to the euro’s recent struggles. The euro has weakened against most G10 currencies after slower-than-expected economic growth figures surfaced. This has heightened speculation that the European Central Bank (ECB) may cut interest rates in September to support the faltering economy.
Later today, all eyes will be on Germany’s CPI inflation report, which is anticipated to show a decline. If inflation does fall as expected, it could influence the ECB’s decision on whether to hold or cut interest rates next month.
Across the Atlantic, the US dollar regained some ground on Wednesday, clawing back losses from earlier this month. Investors are now waiting for key data releases today and Friday, with the spotlight on US Gross Domestic Product (GDP). Forecasts suggest the US economy grew by 2.8% in the second quarter, reflecting the continued strength of American economic output.
Meanwhile, GBP/USD remains near a 28-month high, as the pound continues to benefit from market expectations that the Federal Reserve will cut interest rates next month. The big question is whether the cut will be 25 or 50 basis points—a decision that remains uncertain and could trigger further currency market volatility.
For businesses looking to navigate this fluctuating market or capitalize on upcoming trends, now is the time to seek expert advice. Get in touch with one of our specialists for tailored insights on how these economic shifts may impact your business.