Click below to read AIB's latest AIB's Forex and Interest Rate Outlook for August 2024 ...
August 2024 Forex and Interest Rate Outlook
World economy continues to exhibit resilience. However, subdued growth evident again in 2024, with US outperformance starting to wane, UK accelerating, and Eurozone flagging.
Core inflation remains sticky in some markets, particularly the UK, with consumer spending underpinning high core inflation, however, headline inflation is now close to target in all markets.
Central banks have initiated rate cutting, but remain cautious on the future path of interest rates.
Main currency pairs exhibiting some volatility as central bank policy diverged. Dollar has weakened of late as economic growth has softened.
Expectation is for the dollar to weaken modestly from current high levels versus other majors.
