Sterling Stagnates, Euro Rises 0.3% as UK PMIs Expand, Eurozone Slows
Sterling remains steady as Euro climbs 0.3% against USD. UK PMIs expand, Eurozone GDP revised lower. Markets brace for key data and possible ECB rate cuts.
Published on 10 Sept 2024
, 1 minute read
Here’s this week’s overview of the Euro and Sterling:
Sterling
Sterling remained flat 1.312 against USD last week following the US payrolls data. Data releases were strong last week from the UK with services and manufacturing PMIs both showing solid expansion and house prices rising at their fastest rate since November 2022. Market reactions were muted as they await key labour and growth figures in the coming week.
Euro
The Euro gained by 0.3% against the dollar last week and ended the week trading at 1.108. GDP growth in the Eurozone was revised lower to 0.2% during the second quarter, aligning with concerns that restrictive monetary policy is impacting the bloc’s economy to a larger extent than previously realised, especially in its largest member, Germany.
Consequently, markets piled on bets that the central bank will extend its cutting momentum with another 25bps rate cut this week. Still, the currency remained 3.4% higher against USD since the start of the third quarter as evidence of a softening US labour market strengthened bets on a dovish Fed.
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