The global foreign exchange (FX) markets opened the week with cautious optimism on the 4th of September 2023, as traders turned their attention to the currencies GBP, EUR, and USD. Key economic data releases and global events played a significant role in shaping market trends:

GBP (British Pound): The British Pound (GBP) started the week on a steady note as Markets awaited crucial economic data releases. The focus remained on the upcoming release of UK Services Purchasing Managers’ Index (PMI) figures, which are scheduled for tomorrow. These figures would provide insights into the health of the UK’s services sector and could influence the GBP’s direction for the week.

Markets also kept an eye on developments related to Brexit and any comments or statements from the Bank of England (BoE) regarding monetary policy or interest rate decisions, as these factors could add volatility to the GBP in the coming days.

EUR (Euro): The Euro (EUR) displayed resilience as traders monitored various economic data releases and global developments. Attention was on the recently released Eurozone Manufacturing Purchasing Managers’ Index (PMI) figures, which offered insights into the health of the manufacturing sector. The data indicated some stability, providing mild support for the EUR.

Focus turned to the upcoming release of Eurozone Services PMI figures, which could provide additional insights into the Eurozone’s economic performance. Additionally, any comments or statements from European Central Bank (ECB) officials could influence the EUR’s sentiment.

USD (United States Dollar): The United States Dollar (USD) remained a focal point. Markets continued to digest the recent US Non-Farm Payrolls figures, which had come in slightly above expectations. This data had raised some optimism about the pace of economic recovery in the US.

Attention shifted to the forthcoming release of US Services PMI figures, which were anticipated to provide insights into the health of the services sector, a critical component of the US economy.

Key Data Releases:

• UK Services Purchasing Managers’ Index (PMI) Data (GBP): Markets awaited the release of UK Services PMI figures, scheduled for tomorrow. These figures could offer insights into the health of the UK’s services sector and impact the GBP.
• Eurozone Services PMI Data (EUR): Markets turned to the release of Eurozone Services PMI figures, providing insights into the Eurozone’s economic performance.
• US Services PMI Data (USD): Markets awaited the release of US Services PMI figures, which could offer insights into the health of the US services sector.

As the week began, markets remained watchful of economic indicators, central bank communications, and global developments that could shape currency movements. The GBP awaited Services PMI figures, the EUR found support in Manufacturing PMI data while looking forward to Services PMI figures, and the USD displayed cautious optimism following the release of slightly above-expectations Non-Farm Payrolls data and ahead of Services PMI figures.