26/07/2024
Written by: Ian Morley
Summary:
In the afternoon, the USD weakened after disappointing CPI and retail sales figures from the US, with CPI below the forecast at 0.3%. This bolstered risk sentiment, evidenced by the S&P 500 hitting a new high. GBP also gained, reaching a 5-week peak due to its correlation with equities, while EURUSD reached a 7-week high primarily due to USD weakness following expected Flash GDP data.
Speeches:
Market Insight:
Following significant market movements in response to US inflation data, today’s data is less impactful. GBPUSD and EURUSD have both encountered resistance levels, possibly prompting profit-taking and a mild reversal. The release of the ECB Financial Stability report at 9am may introduce EUR risk if any vulnerabilities are highlighted. While US unemployment claims are the main data point today, they typically don’t heavily influence USD. Any dovish commentary from FOMC speakers could further weaken the USD.