End-of-month flows continued to contribute to EUR weakness and USD gains over the course of the day, with GBPEUR persistently climbing to new one-month peaks.
Due to nerves ahead of Nvidia’s quarterly financial results, US equities fell in the afternoon, which largely led to a broad GBP weakness, with the exception of GBPEUR and GBPDKK. Despite surpassing analyst predictions, when the results were released, they fell short of some ambitious hopes.
Initial market reaction saw equities continue to drop but there were signs of recovery early this morning.
*Daily move - against G10 rates at 7:30am, 29.08.24
** Indicative rates - interbank rates at 7:30am, 29.08.24
There is finally some data for us to sink our teeth into. The US GDP and core PCE numbers are second estimates so may not have much of an impact on the market, therefore focus will probably fall on the jobless claims numbers.
Fed Chair Powell sounded out some nervousness about the speed at which the job market in the US is weakening, so we could see this number come in higher than expected, likely adding even more weakness to USD.
National CPI numbers across Europe are also out this morning. Spanish numbers showed that CPI continues to cool for a third consecutive month, seeing some early EUR weakness. We are also expecting Germany’s numbers later this evening and EU numbers tomorrow. When it comes to GBPEUR, it still looks like we could see a test of the highs seen back in July.
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