Possible downbeat investor sentiment (understandably) keeping the Pound down..
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| Halfway through August I acknowledged Sterling was having a good month, but questioned whether it was enough. This was based on the 'peak and valleys' analysis seen in 2025 so far;
Each time £-€ found itself in a valley (low point), the next peak (high point) failed to reach the one before. Meaning overall, the pair is sliding down.
GBP v EUR started August at the month's low of 1.1450 mid-market and ended 1-cent higher at 1.1550. However, July finished at the same rate range and so nothing was gained or lost MoM.
Momentum has failed to carry on into September presumably because of the concoction of worry ahead for the UK; low growth, high inflation, weak jobs, strong chance of tax rises.
This now puts a lot of pressure on the month being a success for the Pound, ahead of what is sure to be a gloomy looking Autumn..
EUR You may have read last week that France is headed for another 'no-confidence' vote on September 8th.
With political uncertainty/instability comes currency weakness and so the door is ajar for the Euro to fall next week. However, don't be surprised if £-€ fails to move at all.
France's debt is rising, yields are too and political parties are not agreeing on very much at all. But, the UK debt crisis is simply far worse, more pressing and whilst France is Europe's second biggest economy, it is one country of many in the Euro-Zone.
USD The Dollar was weaker in August losing 1% versus the Euro and nearly 2% against the Pound.
The softer USD came after investors bet that a Fed interest rate cut was incoming later this month and further more than anticipated by year-end. Dollar volatility is expected this week as workers/traders etc return to work from summer holidays and some key economic data is being released out of the US.
Please check out the main events of the week below..
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