CPI Miss Drives Aussie Down, Dollar Sees Modest Rise Pre-FOMC

Euro fell notably today, along with decline in Eurozone government bond yields, following weaker-than-expected PMI data. Political instability in France is negatively impacting business activity, while Germany’s economic recovery has lost momentum. At the same time, surge in Germany’s services inflation pressures suggests that ECB is unlikely to implement back-to-back rate cuts in July. The […]

British pound experienced some volatility following BoE’s rate decision, which revealed a dovish tilt in both the voting pattern and the language used. Sterling dipped initially, but then made a swift recovery, surviving as Governor Andrew Bailey dovish remarks in his follow-up press conference. Bailey stressed it’s not time to cut interest yet. But for […]

Trading as been relatively quiet in European session today. Sterling strengthened slightly despite CPI data showing inflation returning to BoE’s target for the first time in three years. Notably, services inflation remains elevated at 5.7%, which could limit the BoE’s ability to aggressively ease policy, although the first rate cut is still expected in August. […]