Daily Spectrum Report

GBP - The British Pound has found support from stronger than expected UK GDP data, with Q2 growth confirmed at 0.3%, outperforming forecasts of 0.1% although notably still showing a slowdown between April and June. This resilience has reduced expectations of a near-term Bank of England interest rate cut. However, with forecasts pointing to slower growth ahead, concerns remain about the Pound's momentum. Overall, firm data and persistent inflation have helped reinforce confidence in Sterling in the short term.

EUR - The Euro remained under pressure amid uncertainty over upcoming US-Russia talks, with concerns about European interests and regional stability dampening investor sentiment. Speculation of a potential European Central Bank rate cut, fuelled by worsening German economic sentiment, further weakened the Euro's outlook. Markets await the Eurozone's upcoming GDP data, though limited impact is expected unless figures deviate from earlier estimates. Overall, Euro movement stayed subdued.

USD - The U.S. Dollar continues to weaken amid rising expectations of a September Federal Reserve interest rate cut following a tame July inflation report. The Dollar Index has fallen for two consecutive sessions, with analysts noting limited bullish catalysts. Persistent political uncertainty, soft data and dovish sentiment are compounding downside pressure, making a meaningful USD rebound unlikely without a strong labour market recovery.

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