EU GDP for the second quarter came in as expected at 0.3% but given there was no surprise to the upside here especially compared to the outperformance that we saw in the UK and the US, we saw broad EUR weakness yesterday.
Last night's Fed minutes showed most Fed officials see “significant” upside risks to inflation and thus more hikes could be on their cards. although worth mentioning that was a split amongst the Fed with two officials leaving rates unchanged. USD extended gains as a result.
More woes from China’s property sector are adding to the risk-averse mood in markets and adding to more weakness for AUD.
* Daily move - against G10 rates at 7:30am, 17.08.23
** Indicative rates - interbank rates at 7:30am, 17.08.23
Jobless claims from the US is the only data point toady but it seems the risk-averse mood in markets will likely support the USD today and could see EURUSD head towards the lows seen in June.
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.