Worldwide Currencies

S&P Global U.S. PMIs reported: services print came out much lower than market forecasts. New Home sales also dropped precipitously to 7-year low. All in all, signs pointing to a contraction in aggregate demand – fuelling expectations for a future Fed pivot in monetary policy

i) Huge beat & prior numbers revised up, ii) hourly earnings up (wages picking up), iii) labour force participation rate down (less labour supply, tight labour market). A ''data dependent'' Fed continues to have a reason to be very hawkish – Dollar is still king.

July non-farm payrolls +528k vs 250k expected; June figure upwardly revised to 398k.

BOE's Bailey: UK forecast to enter recession later in the year forexlive.com/centralbank/bo…

Reeling from a surge in energy prices caused by Russia's invasion of Ukraine, the BoE's Monetary Policy Committee voted 8-1 for a half percentage point rise in Bank Rate to 1.75% - its highest level since late 2008 - from 1.25%.

The Bank of England raised interest rates by the most in 27 years on Thursday, despite warning that a long recession is on its way, as it rushed to smother a rise in inflation which is now set to top 13%.

Business Confidence in Germany decreased to 88.60 points in July from 92.30 points in June of 2022. That's the lowest IFO reading since June 2020 as German economic sentiment continues to worsen #Europe #currencies #news

Sterling opened flat relative to the euro but is currently trading on the backfoot against the dollar. GBP/USD has struggled to find consistent bid acceptance above the 1.2000 level for the past 5 sessions amid a prevalent risk-off mood permeating the markets #currencies #news

GBP/USD Price Analysis: Plummets to over two-week low, seems vulnerable to slide further By @HareshMenghani fxstreet.page.link/S6xp #GBPUSD #Fed #Recession #Technical Analysis #Currencies

$GBPUSD Forecast: Sellers to remain active if 1.2170 holds as resistance ow.ly/RSRt50JKoQ0 by @eren_fxstreet #forex #trading

The dollar suffered minor losses last week on the back of the release of some poor economic figures. Friday’s Michigan Consumer Sentiment Index showed a decline in consumer confidence to a record low, giving a prompt for investors to cut back on future US interest rate hikes

The euro opens Monday trading in line with a two-week high against the dollar, making the most of a weaker greenback. The French Finance Minister Bruno Le Maire offered some support to the EUR this morning speaking with Reuters.

Sterling found some support last week as better-than-expected retail sales data and a weaker dollar allowed the pound to post its first weekly gain in a month.

The pound has given up some of its gains made yesterday in early trading, hurt by a rebound in negative market sentiment. On Thursday, Sterling had a roller coaster day following the interest rate decision by the Bank of England.

BOE raises bank rate by 25 bps from 1.00% to 1.25%, as expected

The dollar experienced losses following yesterday’s Federal Reserve meeting as the bank did not go further than expected in hiking rates, but the greenback has clawed back some of those loses in the face of aggressive future outlook.

The euro suffered losses on Wednesday after an emergency meeting left opinions split among the Eurozone’s 19 members. Last week’s European Central Bank policy meeting saw plans to raise interest rates in order to tame painfully high inflation.

The pound struggled to find support on Wednesday as markets geared themselves up for today’s Bank of England Policy meeting. The central bank is charged with tackling soaring inflation – which is on course for double digits

$GBPUSD Forecast: 1.2200 under threat after dismal UK data ow.ly/MU7k50JvMby by @eren_fxstreet #forex #trading