Friday 13th September – The pound (GBP) remained steady towards the end of last week, consolidating its earlier gains. Analysts suggested that further upward movement was unlikely, with some cautioning that the currency might have been overvalued in recent weeks.
The euro (EUR) saw mixed performance on Friday. Weighing on the currency were the European Central Bank’s (ECB) recent interest rate reduction and disappointing industrial production data from the Eurozone. However, the euro found some support due to its inverse relationship with the weakened US dollar (USD).
The US dollar struggled at the close of last week, having taken a hit on Thursday after domestic producer price data fell short of expectations. Weaker-than-anticipated producer prices in August fuelled speculation that the Federal Reserve may cut interest rates by 50 basis points this week, dampening demand for the USD on Friday.
Thursday 12th September
The pound (GBP) held steady on Thursday after a report warned that UK debt could triple over the next 50 years. The Office for Budget Responsibility (OBR) projected that the national debt could climb to 270% of GDP by the latter half of the century, driven by an ageing population, environmental challenges, and security concerns.
The euro (EUR) remained quiet as the European Central Bank (ECB) announced its second interest rate reduction of the year. Since markets had already factored in the cut, the impact on the euro was minimal, even as the ECB lowered its growth projections.
The US dollar (USD) faced pressure on Thursday following the release of the latest US producer price index. Unlike consumer prices, underlying manufacturing sector inflation came in lower than expected for August, fuelling speculation of a Federal Reserve rate cut and weighing on the dollar.
Wednesday 11th September
The pound (GBP) struggled on Wednesday as investors were disappointed by the latest UK GDP report. Data from July showed the UK economy had stagnated instead of growing by the anticipated 0.2%, causing Sterling to weaken and fueling speculation that the Bank of England (BoE) might lower interest rates in November.
The euro (EUR) edged lower during Wednesday’s trading, pressured by its inverse relationship with the US dollar (USD). Caution among EUR investors also grew as they awaited the European Central Bank’s (ECB) upcoming interest rate decision, leading to limited movement.
The US dollar gained strength on Wednesday after the release of the latest US consumer price index. While headline inflation for August slowed more than expected, a surprise rise in month-on-month core inflation reduced the likelihood of a significant Federal Reserve rate cut next week.
Tuesday 10th September
The pound (GBP) showed initial strength yesterday following the UK’s latest jobs report, which revealed a drop in unemployment to a six-month low for July. However, the pound’s gains were short-lived as worries about a slowdown in wage growth caused Sterling to give up most of its earlier advances by the afternoon.
The euro (EUR) found it difficult to gain traction on Tuesday, with the primary focus being Germany’s latest consumer price index. The finalised CPI data for August confirmed a slowdown in inflation to 1.9%, its lowest level since March 2021.
The US dollar (USD) remained relatively stable yesterday as investors held back from making significant moves ahead of today’s US CPI report. This cautious stance limited any potential gains for the dollar, despite a subdued market sentiment and a slight increase in US Treasury yields.
Monday 9th September
The pound (GBP) showed little movement at the beginning of the week due to the lack of significant UK economic data. Sterling was vulnerable to the prevailing negative risk sentiment throughout Monday.
The euro (EUR) struggled on Monday, affected by its inverse relationship with the US dollar (USD). Investors in the euro were cautious, holding back from making bold moves as they awaited the European Central Bank’s (ECB) upcoming interest rate decision later in the week.
The US dollar started the week on a strong note, benefiting from a risk-averse market environment that boosted demand for the safe-haven currency. Concerns over a potential US recession heightened market uncertainty and supported the USD, while a rise in US Treasury yields further bolstered the dollar’s position during Monday’s session.
Friday 6th September – On Friday, the pound (GBP) showed strength against most major currencies, except the US dollar (USD). Despite a lack of new UK economic data, Sterling remained buoyant, driven by expectations that the Bank of England (BoE) will implement rate cuts more gradually compared to other central banks.
The euro (EUR) ended the week on a weak note. Investors were disappointed by the revised Eurozone GDP growth estimate for the second quarter, which was adjusted downward from 0.3% to 0.2%. This revision reflected the impact of inflation and elevated interest rates on consumer spending and investment within the Eurozone.
The US dollar (USD) experienced volatile trading on Friday, influenced by the release of the latest non-farm payroll figures. Initially, the USD fell after August payrolls came in below expectations. However, the currency quickly recovered as investors reacted positively to stronger-than-anticipated wage growth in the US.
Thursday 5th September
The pound (GBP) strengthened slightly, buoyed by a cautiously optimistic market sentiment. Despite this, gains for Sterling were limited due to the absence of new UK data to support GBP exchange rates.
On Thursday, the euro (EUR) saw a modest rise, fueled by favourable data. This increase was largely attributed to an unexpected rise in German factory orders for July, along with a rebound in Eurozone retail sales during the same period.
The US dollar (USD) faced challenges yesterday, following a disappointing ADP employment report which revealed only 99,000 new jobs in August, well below the anticipated 145,000. However, the dollar’s losses were partially offset by the ISM services PMI report, which showed an unexpected increase in growth for the US services sector, reaching a three-month high in August.
Wednesday 4th September
The pound (GBP) experienced modest gains, boosted by the latest UK services PMI data. The final August index, which showed an upward revision in sector growth, bolstered confidence in the UK’s economic performance.
On Wednesday, the euro (EUR) faced mixed influences from Eurozone data. Although a surprising increase in the region’s producer price index lent support to the currency, its potential for further gains was limited by a downward revision in Eurozone service sector growth for the previous month.
The US dollar (USD) struggled during yesterday’s trading as concerns about a cooling labour market emerged. The latest Job Openings and Turnover Survey (JOLTs) revealed a drop in new job openings to their lowest level since early 2021, adding to the dollar’s challenges.
Tuesday 3rd September
The pound (GBP) edged up against most major currencies, buoyed by modest expectations for Bank of England (BoE) interest rate cuts. Investors continue to view the BoE’s current rate-cutting pace as slower compared to the Federal Reserve and the European Central Bank (ECB).
On Tuesday, the euro (EUR) remained relatively flat due to mounting concerns about Germany’s economic situation. Investors are increasingly anxious about the Eurozone’s largest economy, especially with reports of potential closures at two Volkswagen factories.
The US dollar (USD) gained traction during yesterday’s trading, driven by a risk-averse market that sought the safety of the currency. Nonetheless, gains for the ‘greenback’ were limited in the afternoon as the latest ISM manufacturing PMI revealed ongoing contraction in the US manufacturing sector.
Monday 2nd September
On Monday, the pound (GBP) saw modest gains, buoyed by a generally positive market sentiment. Sterling also benefited from the UK’s latest manufacturing PMI, which confirmed that factory sector growth reached a two-year high in August.
At the start of the week, the euro (EUR) found support from the Eurozone’s revised manufacturing PMI, which was slightly upgraded for August. Although the index exceeded expectations, it still indicated contraction in the bloc’s factory sector, which limited further gains for the euro.
The US dollar (USD) experienced a lack of clear direction as US markets were closed for the extended Labor Day weekend. Despite this, an increase in US Treasury yields contributed to a strengthening of the dollar in overnight trading.
Currency Ranges for the month:
GBP/USD: Low: High:
GBP/EUR: Low: High:
EUR/USD: Low: High: