Markets digest Retail sales figures.

The foreign exchange (FX) markets witnessed notable movements on 21st August 2023, as the currencies GBP, EUR, and USD responded to a blend of economic data releases and global events. Here’s a recap of the key events that shaped the market landscape:

GBP (British Pound): The British Pound (GBP) displayed mixed performance on 21st August, influenced by economic data releases and broader market dynamics. Attention remained on recent inflation data, which indicated a slight decrease in prices. This Consumer Price Index (CPI) data continued to play a role in shaping market sentiment toward the GBP.

Focus turned to the recently released UK Retail Sales figures, which offered insights into consumer spending trends and contributed to the GBP’s movements.

EUR (Euro): The Euro (EUR) exhibited relative stability on 21st August, as markets continued to evaluate economic indicators and their implications for the European Central Bank’s (ECB) future policy decisions. The Gross Domestic Product (GDP) figures for the eurozone released earlier provided insights into the region’s overall economic performance, influencing the EUR’s trajectory.

Attention turned to the upcoming release of Purchasing Managers’ Index (PMI) figures for the eurozone, which could provide insights into the performance of the manufacturing sector.

USD (United States Dollar): The United States Dollar (USD) demonstrated mixed performance on 21st August, as markets assessed economic data releases and global developments. The recently released Retail Sales figures continued to impact market sentiment, indicating a modest increase in consumer spending.

looking ahead to the rest of the week the main release is PMI figures for the US, which could provide insights into the performance of the manufacturing sector.

Key Data Releases:

  • Retail Sales Data (GBP): The recently released UK Retail Sales figures offered insights into consumer spending trends and contributed to the GBP’s movements.
  • Consumer Price Index (CPI) Data (GBP): Attention remained on recent inflation data, which indicated a slight decrease in prices. This CPI data continued to influence market sentiment toward the GBP.
  • Purchasing Managers’ Index (PMI) Data (EUR): Attention was focused on the upcoming release of PMI figures for the eurozone, which could provide insights into the performance of the manufacturing sector.
  • Retail Sales Data (USD): The recently released Retail Sales figures continued to impact market sentiment, indicating a modest increase in consumer spending.
  • Purchasing Managers’ Index (PMI) Data (USD): Markets looked ahead to the release of PMI figures for the US, which could provide insights into the performance of the manufacturing sector.

In conclusion, the currencies demonstrated mixed performance on 21st August 2023. The GBP’s movements were influenced by inflation data and recently released Retail Sales figures, the EUR exhibited stability as traders analyzed economic indicators, and the USD experienced mixed performance ahead of PMI data releases.

*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.