A surprise US Treasury move to step up purchases of long-dated debt pushed bond yields and the dollar sharply lower last week, lifting both sterling and the euro. Both of those currencies experience their own lifts with UK inflation at 2.9%, and political headwinds having diminished under new leadership. The euro is drawing support from strong PMIs and an improving growth picture that could impact the rate hike narrative. Read on for this week’s main talking points.
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Today’s FX rates: 24 August 2026
| Currency pair | Rate |
|---|---|
| gbp usd | 1.3627 |
| eur usd | 1.1665 |
| gbp eur | 1.1682 |
Rates correct as of 12:10am on Monday 24 August but may now have changed.
The Big 3
A deeper look at the performance of major currency pairs this week.
US treasury action weighs on the dollar as sterling climbs
GBP/USD made strong gains last week after a surprise US Treasury move to step up purchases of long-dated debt pushed bond yields and the dollar lower. Sterling was already firm, helped by UK inflation at 2.9% and a shift in politics from headwind to tailwind under the Burnham/Healey leadership. With no key UK data this week, focus turns to the US: hawkish FOMC minutes, Wednesday’s Core PCE, and Warsh at Jackson Hole on Friday are the events to watch.
Strong PMIs bolster the euro’s improving picture
EUR/USD extended its run higher last week, driven mainly by the actions of the US Treasury and the resulting dollar weakness. The euro had solid support of its own: better-than-expected PMIs, strength in German manufacturing, and the first employment growth in the survey after 38 months of losses, all of which weakens the case against an ECB hike in the short term. Lagarde pointed to resilient Q2 growth of 0.4%.
GBP/EUR steadies as both sides find support
GBP/EUR stayed in a tight range, with support around 1.1648. The 2.9% inflation print backs a BoE hold, while the euro drew its own support from strong PMIs, German manufacturing strength and the first employment growth in the survey after 38 months of losses. This week’s data is unlikely to move the dial much. Tuesday’s German ifo and Friday’s French and Spanish inflation prints are the ones to watch.
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Looking forward
Key dates for your calendar.
- Tuesday: 🇦🇺 Australia RBA Meeting Minutes, 🇪🇺 Eurozone Ifo Business Climate
- Wednesday: 🇺🇸 US Personal Spending, US Personal Income, US Durable Goods Orders, US Core PCE Price Index, US GDP Growth Rate (Q2 2nd Est)
- Thursday: 🇪🇺 Eurozone GfK Consumer Confidence
- Friday: 🇯🇵 Japan Consumer Confidence, 🇨🇦 Canada GDP Growth Rate (Q2), 🇺🇸 US Non-Farm Payrolls Annual Revision (Prel), Fed Chair Warsh Speech
What we’re talking to our clients about
Clients can always reach out to us on the phone. Here are some of the conversations we’re having:
- EUR/USD and GBP/USD still close to highs of last week
- Market focus back on Middle East ahead of potential sanctions
- Sterling and Euro support amid concerns about US debt
The contents of this article do not constitute financial advice and are provided for general information purposes only. While the content is based on information believed to be accurate at the time of publication, no guarantee is provided.
