USD continues to weaken.

The foreign exchange (FX) markets experienced a day of relative stability on 13th July 2023 as the currencies GBP, EUR, and USD navigated key data releases and geopolitical developments. Here’s a recap of the events that shaped the market on that day:

GBP (British Pound): The British Pound (GBP) maintained stability on 13th July as market participants continued to assess the implications of recent economic data releases. The focus remained on the upcoming UK GDP data, which is expected to provide comprehensive insights into the country’s economic performance. Market participants closely monitored this release for potential impacts on the GBP’s trajectory. Additionally, attention was paid to speeches and remarks from the Bank of England (BoE) Governor, Andrew Bailey, for any indications of the central bank’s monetary policy stance, which could influence the GBP.

EUR (Euro): The Euro (EUR) displayed resilience on 13th July as market participants analyzed economic data releases and geopolitical developments. Eurozone GDP data was closely monitored, providing insights into the region’s economic performance. The figures offered indications of economic activity within the Eurozone and potentially influenced the EUR’s trajectory. Additionally, market participants continued to monitor speeches and comments from European Central Bank (ECB) officials for any indications of shifts in the central bank’s monetary policy stance. Geopolitical factors within the Eurozone also influenced the EUR’s movements.

USD (United States Dollar): The United States Dollar (USD) reacted to key data releases and geopolitical developments on 13th July. The implications of the US Consumer Price Index (CPI) data released earlier in the week continued to be assessed. The lower-than-expected increase in inflation initially triggered volatility in the USD. Additionally, market participants closely monitored speeches and remarks from Federal Reserve officials for any indications of shifts in the central bank’s monetary policy stance, which could impact the USD’s performance.

Key Data Releases:

  • UK GDP: The release of UK GDP data was anticipated, as it would provide comprehensive insights into the overall health of the UK economy and potentially impact the GBP’s performance.
  • Eurozone GDP: Market participants closely monitored the release of Eurozone GDP data to assess the region’s economic performance. The figures offered indications of economic activity within the Eurozone and potentially influenced the EUR’s trajectory.
  • US CPI Data: The release of the US Consumer Price Index (CPI) data earlier in the week had a significant impact on the USD. The implications of lower-than-expected inflation figures for future monetary policy decisions by the Federal Reserve continued to be evaluated.

In conclusion, the GBP and EUR maintained stability on 13th July, while the USD continued to weaken. Market participants closely tracked economic indicators and central bank communications to gauge market sentiment and currency movements. As the week progresses, the GBP, EUR, and USD will continue to be influenced by data releases and geopolitical developments, shaping expectations regarding monetary policy decisions and overall market sentiment in the FX markets.

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.