|
|
|
|
|
|
|
|
|
|
USD softened following dovish Fed signals, with Waller hinting at a possible July rate cut amid labour market fragility. GBP held key levels despite weak UK jobs data and rising BoE cut expectations, while EUR gained on broader USD weakness. CNY remained rangebound, anchored by cautious PBoC policy and external headwinds.
|
|
|
|
|
|
GBP
|
Despite a batch of underwhelming labour market figures, GBP edged higher. The latest data revealed an increase in the unemployment rate to 4.7%, accompanied by a deceleration in wage growth. This reinforced expectations that the BoE could move to reduce interest rates by August. GBP found support, largely thanks to a broader uptick in risk appetite across global markets, which overshadowed the domestic economic concerns.
|
|
|
|
|
|
|
|
USD
|
The USD extended its upward momentum following a stronger-than-anticipated retail sales report for June. Consumer spending showed resilience, providing a positive surprise to markets. Additionally, jobless claims came in below forecasts, hinting at continued labour market strength. These developments bolstered the case for a more assertive stance from the Federal Reserve, enhancing the USD’s appeal during the trading session.
|
|
|
|
|
|
|
|
|
EUR
|
EUR advanced modestly, supported by upbeat risk sentiment across global equity markets and a softer USD. Although recent Eurozone data has been mixed, with eyes now on M3 money supply and business sentiment releases, EUR/USD continues to test key resistance. A decisive break above could open the door to 1.1850 and beyond, but for now, gains remain measured as traders await clearer signals from upcoming ECB commentary and economic indicators.
|
|
|
|
|
|
|
|
CNY
|
CNY held steady against the USD in today’s trading, nudging slightly higher but staying within a well-defined range. While recent months have seen mild appreciation, CNY remains under pressure from ongoing trade frictions, a wide interest rate differential with the US, and cautious monetary policy from the PBoC. Market expectations suggest continued rangebound behavior, as sentiment remains balanced between improved capital inflows and persistent external headwinds.
|
|
|
|
|
|
|
|
|
The USD surrendered its gains late in the session after Federal Reserve Governor, Christopher Waller, signaled support for a potential rate cut as early as this month. He highlighted growing fragility in the US labour market, describing it as “on the edge,” and noted limited upside risks to inflation. The rhetoric triggered a retreat in USD strength, with major pairs like GBP/USD and EUR/USD rebounding from significant technical support zones as USD began today’s trade on weaker footing.
Meanwhile, UK employment data continued to paint a picture of economic deceleration. A rise in the unemployment rate, coupled with moderating wage growth and a decline in overall job numbers, has further entrenched expectations of a Bank of England rate cut at the August meeting. Market-implied odds now suggest nearly a 70% chance of policy easing. Nonetheless, GBP has managed to defend key support levels against USD and EUR, although sentiment remains fragile. Any additional soft data or dovish tone from BoE officials could quickly renew downward pressure on GBP.
Traders will be closely monitoring upcoming economic indicators on both sides of the Atlantic. In the US, all eyes will be on next week’s PMI surveys, which could provide fresh insight into the strength of the services and manufacturing sectors ahead of the Fed’s next decision. A continued slowdown may reinforce calls for policy easing. In the UK, attention turns to CPI inflation data due midweek — a softer print would likely cement the case for an August cut, while a surprise to the upside could delay expectations. For both currencies, central bank commentary and macro releases will drive near-term direction, with technical levels in GBP/USD and EUR/USD continuing to act as critical battlegrounds for traders.
|
|
|
|
HOW WE CAN HELP
Our experienced currency team is here to ensure you make the most of your international transfers. By gaining a clear understanding of your goals, we offer personalised support and recommend the most suitable strategies to help you navigate the currency market with confidence. Get in touch with Osman Hanif today on +44 (0) 20 3371 9200 or email osman@magnafinancial.com
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
