Attention turns to US CPI.

The foreign exchange (FX) markets saw continued activity on 9th August 2023, with the currencies GBP, EUR, and USD reacting to various economic developments and data releases. Here’s a recap of the key events that shaped the market landscape:

GBP (British Pound): The British Pound (GBP) experienced mixed trading conditions on 9th August. The currency continued to be influenced by the aftermath of the Bank of England’s (BoE) recent interest rate hike to 5.25%. The rate hike signaled the central bank’s commitment to tackling inflation and an overheating economy.

Market attention turned to the upcoming release of Gross Domestic Product (GDP) figures for the UK, scheduled for Friday. These figures are anticipated to provide valuable insights into the country’s economic performance and could influence market sentiment toward the GBP.

EUR (Euro): The Euro (EUR) displayed mixed sentiment on 9th August, influenced by economic developments and indicators. Markets were focused on the Harmonized Index of Consumer Prices (HICP) figures released yesterday, which indicated a moderate increase in inflation within the eurozone. This data could influence the European Central Bank’s (ECB) future policy decisions, impacting the EUR’s trajectory.

USD (United States Dollar): The United States Dollar (USD) exhibited mixed performance on 9th August. The currency’s movement was influenced by ongoing market sentiment and anticipation of key economic data releases. Markets focused on the release of Consumer Price Index (CPI) tomorrow, which will provide insights into inflation trends and could impact market expectations regarding the Federal Reserve’s future policy actions.

Key Data Releases:

  • Upcoming Gross Domestic Product (GDP) Figures (GBP): Scheduled for Friday, these figures are expected to offer insights into the country’s economic performance and could influence the GBP’s trajectory.
  • Harmonized Index of Consumer Prices (HICP) (EUR): The HICP figures released yesterday indicated a moderate increase in eurozone inflation, potentially impacting the EUR’s direction.
  • Upcoming Consumer Price Index (CPI) Data (USD): Markets are preparing for the release of CPI figures later this week, expected to provide insights into inflation trends and influence market expectations about the Federal Reserve’s future policy decisions.

In conclusion, the currencies displayed varied performance on 9th August 2023. The GBP faced mixed trading conditions post the BoE’s rate hike, the EUR exhibited mixed sentiment amid inflation indicators, and the USD demonstrated mixed performance while awaiting CPI data. The upcoming GDP figures for GBP holds the potential to further shape currency movements.

*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.