Today's session on the currency market brings a continuation of the weakness of the US dollar against other currencies. There is especially a lot going on in the British pound market, which is recording its biggest daily gain since 2020! Signs of a complicated labor market situation in the UK gave hope to speculators that the BoE will tighten macroeconomic policy next month.
The Euro gained after comments from Klaas Knot, a member of the ECB Council, who first signaled the possibility of a 50 basis point hike if inflation data forces the issue. Investors now assume that the ECB will raise rates by one percentage point by December.
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Create account Try a demo Download mobile app Download mobile appMeanwhile, strong U.S. retail sales data improved risk sentiment on Tuesday, boosting stocks and weakening the dollar against all G10 currencies except the Japanese yen.
US Dollar Index (USDIDX) vs EUR/USD; GBP/USD. H1 interval. Source: xStation 5
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