The dollar starts the week on the back foot as markets brace for a high-stakes run of events. U.S. inflation data on Tuesday could set the tone for the Fed’s next move, while a looming tariff deadline between Washington and Beijing risks reigniting trade tensions. Adding to the mix, President Trump is set to meet with Vladimir Putin on Friday in a summit that could influence geopolitical sentiment. In Europe, the euro holds recent gains despite fading momentum, and in the UK, sterling extends its post-BoE rally against a backdrop of stubborn inflation and slowing growth.
Current rates
| Currency pair | Rate |
|---|---|
| eur usd | 1.1659 |
| gbp eur | 1.1544 |
| gbp usd | 1.3460 |
Rates correct as of 08:20am on Monday 11 August but may now have changed.
The Big 3
Three stories covering the latest developments in economies, currencies and borders.
High stakes week leaves Dollar on the defensive
The U.S. dollar extended losses on Monday ahead of a pivotal week for markets. July’s CPI data, due Tuesday, will be closely watched for signs of easing inflationary pressure. At the same time, Washington and Beijing face a deadline to agree a new tariff arrangement, with failure risking renewed trade tensions. Adding to the uncertainty, a U.S.–Russia summit on Friday could shape geopolitical sentiment. With multiple risks converging, appetite for the greenback remains subdued.
Euro strikes back: Dollar to feel the force?
The euro surged to a 10-day high near $1.1700 last Thursday as the dollar came under renewed pressure from President Trump’s push for lower interest rates. Gains proved short-lived, with the pair easing back below $1.1650 on Friday as investors showed little appetite to extend the rally. With political pressure on the Federal Reserve building and key U.S. inflation data due this week, sentiment around the greenback remains uneasy.
Pound gains on rate cut, but risks linger
Sterling extended its rally after the Bank of England cut rates by 0.25%, though the decision passed by a narrow margin amid inflation concerns. Headline CPI rose to 3.6% in June , well above the 2% target even as growth slowed and the labour market softened. With GDP barely expanding and unemployment steady at 4.7%, the UK faces a stagflationary backdrop that leaves sentiment toward GBP delicately balanced.
Looking forward
- Tuesday: US CPI, Reserve Bank of Australia interest rate decision, UK labour market data and India CPI.
- Wednesday: CPI from Germany, Spain, and Japan.
- Thursday: UK GDP and Australia unemployment rate.
- Friday: US retail sales, Japan GDP and China industrial production and retail sales.
Here’s what we’re talking to our clients about
We’re always here to support. Here are some of the conversations we’re having:
- GBP resilience and EUR/GBP weakness post-BoE cut
- EUR/USD stalls despite softer USD
- Key UK, EU, and US data in focus
- Geopolitical risk from US–Russia talks
The contents of this article do not constitute financial advice and are provided for general information purposes only.