Currencies in a Nutshell: GBP on the Rise, USD’s Dilemma and Euro’s Caution.
GBP/Sterling: The British pound (GBP) has been doing well lately, mainly due to the weakening of the US dollar. It’s on a winning streak for the sixth day in a row, helped by positive UK GDP data.
USD/Dollar: The US dollar (USD) is losing strength, partly because the Federal Reserve has been making statements that suggest a more cautious approach. Also, rising long-term US Treasury yields are a factor. Recent news from the Middle East is affecting the dollar, but if there’s concrete evidence of Iran’s involvement, it could significantly impact the markets.
EUR/Euro: The European Central Bank (ECB) officials don’t seem likely to increase interest rates soon because they’re concerned about falling prices (disinflation). Additionally, the International Monetary Fund (IMF) released a report that downgraded growth prospects for many countries, with Germany being one of the worst-hit, with predictions of declining GDP in 2023 and 2024.
Economic Calendar
| Expected | Previous | ||
|---|---|---|---|
| 07:00 GBP | GDP 3-Month Avg | 0.3% | 0.2% |
| 07:00 GBP | GDP YoY | 0.5% | 0.3% |
| 07:00 GBP | Manufacturing Production YoY | 3.4% | 3.1% |
| 12:30 EUR | ECB Monetary Policy Meeting Accounts |