Weekly currency forecast: US dollar to strengthen on upbeat GDP?
Currencies Direct July 22nd 2024 - < 1 minute read
After striking multi-month highs last week, the pound then retreated due to some downbeat UK economic data.
This week, the latest US GDP figures are in the spotlight. Could an acceleration of growth in the second quarter see the US dollar surge?
Pound
Stronger-than-forecast UK inflation saw the pound hit fresh multi-month highs last week. However, Sterling retreated in the second half of the session amid cooling wage growth and slumping retail sales.
This week the pound could strengthen once again, if the UK’s latest PMI surveys show that service sector activity accelerated in July.
Euro
The euro wobbled last week as the European Central Bank (ECB) left interest rates unchanged and signalled uncertainty over its policy outlook. However, the safer euro rose against its riskier peers.
The Eurozone’s July PMIs may drive most movement in the euro this week. If they report that business activity in the bloc improved this month, EUR exchange rates could enjoy support.
US dollar
The US dollar managed to stage a recovery last week, with some positive economic data and a pushback on interest rate cut bets from some Federal Reserve officials helping to lift USD exchange rates.
The ‘greenback’ could gain further ground this week as the latest US GDP figures are forecast to show that US economic growth accelerated in the second quarter.
Australian dollar
The Australian dollar faced selling pressure last week as mixed Australian jobs data and a souring market mood saw the risk-sensitive ‘Aussie’ struggle.
Amid a lack of more impactful data this week, Australia’s PMI reports could drive most AUD movement. Will a slowdown in private sector activity this month see the ‘Aussie’ dollar fall further?
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Currencies Direct