03/10/2024
Written by: Ian Morley
Summary:
The US dollar reached a seven-week high during Friday’s trading session following the release of the latest PMI data, which significantly exceeded market expectations, further showcasing the underlying strength of the US economy. Meanwhile, the British pound continued to decline after the recent Bank of England Monetary Policy Committee meeting, where dovish comments led some market participants to anticipate a rate cut at their next meeting in August. Political pressure remains a burden on the euro ahead of the first round of voting in the French elections, scheduled for 30th June.
Speeches:
Market Insight:
The US dollar continues to attract inflows as political instability in France weighs heavily on the euro, and US economic data continues to surpass expectations. After a busy period for economic data, this week is relatively light, with US Core PCE data (the Fed’s preferred measure of inflation) due on Friday taking the spotlight. Additionally, markets will be closely watching the upcoming Biden/Trump debate on Thursday.