26/07/2024
Written by: Ian Morley
Summary:
FX volatility remained unusually low yesterday, evident from GBP’s performance, which was mirrored by EUR and USD.
Speeches:
• EUR – ECB Knot, Schnabel, De Cos, Guindos
Market Insight:
Following a notably calm day yesterday, attention now turns to the US, where we await data on consumer spending in February and producer price inflation. Anticipated increases in retail sales and inflationary pressures from the PPI figures may prompt a strengthening of the USD, although recent market sentiment has seen a reluctance to buy USD, particularly on weaker data.
ECB’s Stournaras advocated for two rate cuts before the August summer break, followed by two more by year-end, aligning with current market expectations. EUR opened slightly weaker in response.