💸 Watch the Pound

▪️ Pound Performance: The pound reached new two-week highs against the dollar and euro at the start of a significant week but fell sharply against the yen, down 1.22% to 195 yen after peaking over 200 yen earlier. The sharp movements in yen are attributed to suspected interventions by Japanese authorities to bolster the weakening currency.

▪️ Dollar vs Pound: The pound improved modestly against the dollar, up 0.27% to $1.25275, rebounding from five-month lows. This recovery comes amid anticipations of the Bank of England cutting rates before the Federal Reserve, narrowing the interest rate gap with the U.S.

▪️ Economic Outlook Enhances: Recent economic data has bolstered the pound and the euro more than expected. Services PMI in both the Euro-zone and the UK showed significant improvement, reaching near-year highs, suggesting an end to economic stagnation.

▪️ Euro Performance: The pound also strengthened against the euro, with the exchange rate at 85.52 pence per euro, marking the strongest since April 17.



📌What Next

Stay updated on market shifts as central banks' next moves could further influence currency dynamics.