The foreign exchange (FX) markets continued to experience notable movements on 17th August 2023, with the currencies GBP, EUR, and USD responding to a combination of economic indicators and global events. Here’s a recap of the key events that shaped the market landscape:

GBP (British Pound): The British Pound (GBP) displayed a mix of performance on 17th August, influenced by economic data releases and broader market sentiment. Attention remained on recent inflation data, which indicated a slight decrease in prices. This Consumer Price Index (CPI) data played a role in starting to bring inflation back in line, shaping market sentiment toward the GBP.

Later this week is the release of the UK Retail Sales figures, which could provide insights into consumer spending trends and impact the GBP’s trajectory.

EUR (Euro): The Euro (EUR) experienced fluctuations on 17th August, as markets continued to analyze economic indicators and their implications for the European Central Bank’s (ECB) future policy decisions. The recently released Gross Domestic Product (GDP) figures for the eurozone provided insights into the region’s overall economic performance, influencing the EUR’s direction.

Attention shifted to the upcoming release of Harmonized Index of Consumer Prices (HICP) figures for the eurozone, which could offer insights into inflation trends within the region.

USD (United States Dollar): The United States Dollar (USD) demonstrated mixed performance on 17th August, as traders evaluated economic data releases and global developments. Attention remained on the recently released Retail Sales figures, which indicated a modest increase in consumer spending. These figures continued to shape market sentiment and expectations about the Federal Reserve’s future policy actions.

Also of note was the recently released Housing Starts figures, which came in slightly better than expected. This data provided insights into the performance of the US housing market and contributed to the USD’s movement.

Key Data Releases:

• Consumer Price Index (CPI) Data (GBP): Attention remained on recent inflation data, which indicated a slight decrease in prices. This CPI data played a role in shaping market sentiment toward the GBP.
• Harmonized Index of Consumer Prices (HICP) Data (EUR): Attention turned to the upcoming release of HICP figures for the eurozone, offering insights into inflation trends within the region.
• Retail Sales Data (USD): Attention remained on the recently released Retail Sales figures, which indicated a modest increase in consumer spending. These figures continued to influence market sentiment and expectations about the Federal Reserve’s future policy actions.
• Housing Starts Data (USD): Also considered was the recently released Housing Starts figures, which came in slightly better than expected and provided insights into the performance of the US housing market.

In conclusion, the currencies displayed a mix of performance on 17th August 2023. The GBP’s movements were influenced by inflation data and anticipation of Retail Sales figures, the EUR experienced fluctuations as markets analyzed economic indicators, and the USD exhibited mixed performance following the release of Retail Sales figures and positive Housing Starts data.