Euro trims gains as the Pound strengthens ahead of Andy Burnham’s nomination
The Euro (EUR) ticks lower against the British Pound (GBP) on Monday, trading at 0.8495 at the time of writing, as last week’s rebound from 13-month lows at 0.8455 failed to consolidate above 0.8500.
The Sterling is picking up across the board as the market braces for the nomination of the former Mayor of Manchester, Andy Burnham, who is expected to replace Keir Starmer, who stepped down as Prime Minister in June after only two years in office,
Burnham, who will become the seventh UK Prime Minister in just over a decade, has pledged in an interview with The Times newspaper to release a 10-year economic plan to “rewire” the UK and improve people’s lives.
The Pound has kept a solid tone since Burnham was presented as the best-positioned candidate to replace Starmer, as he strived to calm markets, promising a responsible fiscal policy. Investors, however, are likely to keep a cautious stance with the GBP, awaiting the identities of the Cabinet’s members.
The Euro, on the other hand, remains on its back foot, weighed by the escalating hostilities in Iran and the higher Oil prices, as the barrel of Brent Crude climbed to fresh one-month highs, a few cents below $90.00 on Monday. In this context, the European Central Bank (ECB) is widely expected to stand pat on rates at its monetary policy meeting, due later this week, but President Cristine lagarde will, most likely, be questioned about a rate hike in September.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Chainlink (LINK) Price Tests a Crucial Resistance—Is a Rise to $20 on the Horizon
AMD acquires World Labs for $8.2 billion, Fei-Fei Li appointed as Chief Scientist
AMD acquires AI startup World Labs in an all-stock transaction valued at approximately $8.2 billion. World Labs was co-founded by AI pioneer Fei-Fei Li and focuses on spatial intelligence and three-dimensional environment simulation. Upon completion of the transaction, Fei-Fei Li will serve as AMD's Executive Vice President and Chief Scientist. This move indicates that AMD aims to internalize model research capabilities as a driving force for chip design and to compete directly with Nvidia in physical AI domains such as robotics and simulation.
Dow Jones Industrial Average gives back Friday's rally on a Boeing delay
ECB rate hike expectations cool down, Lagarde: Rising long-term rates will suppress growth and inflation
Christine Lagarde, President of the European Central Bank, stated that a significant rise in long-term interest rates will slow economic growth and suppress the transmission of energy prices to overall inflation, exceeding the extent forecasted by the ECB in September. She also emphasized that in the absence of signs of second-round effects, the ECB should adopt "moderate response measures" to control inflation. As a result, the market’s expectation of an ECB rate hike in October has dropped to less than 40%.
Crypto prices
More
