Global Currencies React to Economic Data: Pound and Euro Show Movement Amid U.S. Inflation Trends

The pound rose following solid British GDP data, while the euro held steady above $1.10 due to slowing U.S. inflation, hinting at a potential Fed rate cut. Market reactions were observed across other currencies including the yen and Australian dollar, influenced by regional economic performances.

The pound saw an uptick on Thursday following strong British GDP data, while the euro maintained its position above $1.10 due to data indicating slowing U.S. inflation. This development has reinforced expectations of a forthcoming Fed rate cut next month.

Overall market sentiment was calmer after recent volatility, with the pound appreciating by 0.2% against the dollar, sitting at $1.2856. Britain's economy exhibited a 0.6% growth in Q2 2024, aligning with economists' forecasts and building upon the previous quarter's 0.7% growth.

The euro also weakened by 0.2% against the pound, settling at 85.66 pence. The European common currency remained steady against the dollar, having peaked at $1.10475 earlier in the week, bolstered by the latest U.S. inflation figures.

(With inputs from agencies.)