Dear Reader,

Today's overview of economic news and market action

• Further weakening in the dollar last week
• Evident in EUR/USD and GBP/USD posting fresh YTD highs
• EUR/USD traded up to $1.12, GBP/USD reached $1.323
• A stronger sterling has seen EUR/GBP move below 85p
• Some key inflation data due this week from the US and Eurozone
• Provides some event risk for the respective currencies

All rates quoted are indicative market rates.

House prices continue to trend sharply higher. They were up 8.6% YoY in June. Consumer prices rose by 0.2% in July, amid further increases in transport and hospitality costs. Revisions to the data show the unemployment rate averaged 4.4% in Q2’24 up from 4.3% in Q1’24. The preliminary reading indicates GDP expanded by 1.2% in Q2’24, but it remained 1.4% lower in YoY terms.