GBP
Sterling reversed on its gained from the previous weeks, as uncertainty returned and investors looking for more haven currencies.
Bank of England as expected raised rates by 0.5% to 1.75%, it was however Governor Bailey advising that risks around the MPC forecasts were exceptionally large which indicated a year-long recession that weakened Sterling.
GDP Release due on Friday is set to show that the economy shrank by 1.2% in the month previous.
EUR
European markets advanced as investors continue to monitor corporate earnings after a quiet week on economic data, as they assess the risk of a recession.
Stoxx 600 index climbed 0.9% with tech stocks adding 1.3% to lead gains as all sectors entered positive territory.
It is set to be another quiet week for the Euro on the data front, with no major releases expected.
USD
After a brief spell of weakness, investors returned to the US dollar last week as nervousness surrounded other major currencies and recessions.
Data releases have been the point of focus, as non-farm payroll posted its largest increase to the sector since March this year.
Data focuses again on the US this week, with consumer and producer inflation expected later this week.
Data Releases
| Date | Region | Release | Previous | Consensus |
| Wednesday 10th August | US | CPI m/m | 1.30% | 0.20% |
| Thursday 11th August | US | PPI m/m | 1.10% | 0.30% |
| Friday 12th August | UK | GDP m/m | 0.50% | -1.20% |
| Friday 12th August | US | Prelim UoM Consumer Sentiment | 51.50 | 52.50 |
World News
China has announced it is extending its military exercises surrounding Taiwan which has disrupted shipping and air traffic. Substantially raising concerns over an imminent invasion. China has ignored calls to calm the tensions, with no indication when it would end. Taiwan has responded by putting its military on alert and deploying air and sea assets.
The US Senate passed a landmark climate bill which is expecting to lower its global warming emissions. Supporters of the Bill say it will reduce climate heating carbon emissions, lower drug prices for the elderly and demand higher taxes from corporations and the wealthy. The Bill was slightly less than President Joe Biden’s original plan, which was set to cost $6 trillion, but will now cost $437 billion.
Indices
| Share Index | Prev. Close | Open |
| FTSE100 | 7439.74 | 7439.74 |
| DAX | 13573.93 | 13703.38 |
| CAC40 | 6472.35 | 6510.45 |