The British pound edged lower on Thursday, slipping 0.12% to $1.3523 against the U.S. dollar. The move came as the yen rallied, pushing the USD/JPY pair through the 155.0 level before settling around 153.0 overnight.
The euro also weakened, with EUR/USD down 0.11% at 1.1610. ING’s FX strategist Francesco Pesole noted that the euro‑dollar pair could fall toward 1.150 in the coming weeks.
Commodity prices were near the $100‑a‑barrel mark for Brent crude, adding a backdrop of stable energy markets. Market participants priced roughly 15 basis points of additional Federal Reserve tightening into September, despite an otherwise quiet U.S. calendar and no Fed speakers scheduled for the day.
Eurozone economic data showed a modest improvement, with Q2 GDP growth revised up to 0.6% quarter‑on‑quarter from 0.4%. The revision offered limited support for the euro, which remained under pressure.
In the United Kingdom, the pound received marginal backing from a fiscal speech by Chancellor John Healey on Monday, but the broader sentiment stayed cautious. The upcoming European Central Bank meeting on Thursday is seen as a potential dovish catalyst, while Friday’s U.S. CPI release is flagged as a clear risk event for the dollar.
Pesole emphasized that the recent market moves are “primarily a JPY story rather than evidence of a broader shift in sentiment towards the dollar,” and warned that the U.S. CPI data could reignite volatility.
