USD closed higher on Friday following better than expected payroll numbers, as well as better manufacturing PMIs from data agency S&P and ISM, as well as the prices paid number for August. The data continues to support the narrative of a ‘soft landing’ in the US. GBPUSD and EURUSD both declined to previous support levels.
* Daily move - against G10 rates at 7:30am, 04.09.23
** Indicative rates - interbank rates at 7:30am, 04.09.23
.avif)
.avif)
Quiet start to the week with the US and Canada closed for bank holidays, and on the margins we have the Sentix investor confidence numbers from Europe, as well as speeches by ECB members Nagel, Lagarde, and Panetta. The EUR has been steadily declining off its July high, with markets focusing on the prospect of stagflation within the eurozone economy. We’ll be listening to ECB speakers throughout the course of the week to gauge further comments on the economy.
As mentioned last week, USD tends to have its best month in September, and Friday's numbers have set the currency up well to start the month. This week's focus will be on a few Fed speakers as well as the ISM services numbers on Friday. A pick up in activity will back the soft landing narrative for the US economy, and should continue to be supportive for the currency.
With concerns about the eurozone economy arising last week, we saw the EURdrop through its September uptrend support line, suggesting that we could well be near the end of the EUR’s year long bull run. We look towards further comments from the ECB about the economy, and the implication on any additional interest rate hikes this year.
Our team of currency experts are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer specialised guidance on the best options available to you. Over the last 17 years we’ve helped over a million customers and last year alone processed over £9.1bn. We’re tried and trusted, and we’re ready to help you.
Have a great day.
Sign up to our daily market reports to get the latest news and insights on worldwide currency movements straight to your inbox every morning.
Enter your email address below to subscribe.
