• Daily market updates

• #Forex

Sterling, euro swing on central bank expectations
 

Weak dollar, struggling sterling on weak data

Global currency markets are experiencing a cautious mood this week, with noticeable fluctuations in the British pound and the euro, as traders await fresh signals from major central banks, especially the U.S. Federal Reserve and the Bank of England. Today, the British pound stands at 1.3427 against the U.S. dollar, holding onto modest gains after weak UK labor market data reduced expectations of near-term rate hikes. Meanwhile, the euro has fallen to 1.1331, affected by waning business confidence in the eurozone amid slowing German growth.

The U.S. dollar continues to decline against a basket of major currencies, driven by rising expectations that the Federal Reserve will maintain current interest rates at its upcoming meeting. This outlook is supported by moderate inflation pressures and a stable labor market.

Sideways movement is likely to persist for major currency pairs until the release of key U.S. economic data later this week, including the Fed minutes and jobless claims.