USD losses were capped after Friday’s soft US payrolls report, with USD moves consolidating in a tight range yesterday.
GBP finished in the green ahead of Thursday's BoE meeting.
CHF underperformed despite surprise upside on CPI numbers as markets continued to focus on the 39% export tariff on Switzerland. The Swiss government announced yesterday it is ready present a new attractive offer to the US.
Read more about the Bank of England's interest rate decision here:
*Daily move - against G10 rates at 7:00 am, 05.08.25
** Indicative rates - interbank rates at 7:00 am, 05.08.25
Today brings potentially directional movement with the release of the US ISM Services PMI, which could see demand for USD pick up, given expectations are for further expansion in the sector in July.
For the EUR, EU PPI numbers are due for release at 10am, indicating higher price pressures which would support recent argument that the ECB could well be done with cutting interest rates.
General risk appetite seems to have renewed with stocks attempting to recoup last week's losses as markets continue to digest Friday’s job numbers and the increased odds of a rate cut in September by the Fed. Fed member Mary Daly commented last night that the time for a rate cut is nearing and that two more rate cuts will be needed.
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