Following the news of the latest monthly GDP release, the Pound managed to end the week in a solid position. This was down to the fact that UK GDP had grown by 6.6% in July, proving that the economy was moving in the right direction. The currency is still very much being dictated by the uncertainty around Brexit, with Boris Johnson’s internal market bill due to be debated in the House of Commons. However, as the week rounded off, the currency finished at 1.0801 against the Euro and 1.2795 against the US Dollar according to the Foreign Exchange Market.
The Euro looked to strengthen again after the gains seen during trading on Thursday, especially following remarks from policymakers at the European Central Bank. Many of them backed the stance taken by the ECB regarding not targeting Euro exchange rates. Industrial production figures this week will have an impact on Euro investors.
Following equity markets moving higher on Friday, the US Dollar dipped initially although the safe-haven currency did manage to retrieve some of these gains after US headline inflation came in over what was expected during August. A rate decision by the Federal Reserve will be the main focus for investors this week.