Sterling Dips, Euro Gains as Inflation Data Looms

Here’s this week’s overview of the Euro and Sterling:

Sterling

Sterling traded at 1.275 against USD last week, a 0.25% depreciation. Data was rather sparse with house prices and the S&P services PMI both beating expectations. This week we will see key inflation and employment data released for July alongside the US inflation report. This could well cause more volatility in the week to come.

Euro

The Euro gained, once again, against the dollar last week and ended the week trading to 1.092. Producer price inflation had its first monthly increase since October 2023, in a sign that price pressures have not completely disappeared in the Eurozone.

Forward expectations of interest rate cuts were revised down thanks to this and the strong GDP release the week prior. The key US inflation data this week will be the most watched release for Euro holders.