Volatility Returns: Inflation Data and Policy Signals Drive FX Markets

Central Banks ECB: Left interest rates unchanged last week, maintaining a cautious stance as inflation trends closer to target. Policymakers emphasised a meeting by meeting approach, remaining data dependent. BoE: Also left interest rates unchanged, keeping policy restrictive as inflation remains above target. Future easing is expected to be gradual and data driven. United States…

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Jackson Hole Countdown: Will Inflation Tip the Scales?

Summary A data heavy week lies ahead, culminating in the Jackson Hole Economic Policy Symposium. Markets are poised for significant FX moves around UK CPI and activity data, FOMC minutes and Chair Powell’s address, and President Lagarde’s remarks alongside Euro Area PMIs. The near term direction for USD, GBP, and EUR will hinge on whether…

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Sterling Rises on Strong UK Inflation, Markets Eye Fed’s Interest Rate Decision

GBP The British Pound strengthened during Wednesday’s London session following hotter-than-expected UK inflation data for August. At the time of writing, GBP|USD was nearing 1.3220, while GBP|EUR held around 1.1875. Volatility is expected later today with the Federal Reserve’s monetary policy decision at 18:00 GMT. According to the Office for National Statistics, core Consumer Price…

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Geopolitical Tensions Drive Investors to USD

GBP Sterling took a hit, sliding to its lowest point against the Dollar since November, now hovering just above the 1.24 mark, all down to Dollar strength, mainly due to tensions in the Middle East boosting the Dollar’s safe-haven appeal. Sterling is trading better against the Euro, trading around 1.1710, with the Euro weakness mainly…

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