Market Update | August 2023


Central banks like the Federal Reserve (Fed), Bank of England (BoE), and European Central Bank (ECB) are all signaling higher interest rates, with an emphasis on longer-term rate increases. This trend has been driven by rising US treasury yields and disappointing economic data from China, which have impacted currency markets. Additionally, forward-looking ISM Surveys in Europe, the UK, and the US have shown weakness. After the Jackson Hole symposium, analysts are contemplating the possibility of a final rate hike from the Fed, while the BoE is expected to continue raising rates, although uncertainty surrounds the ECB’s stance on rate hikes.

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About Simon Walker


Simon Walker is head of the GPS Capital Markets trade desk in our London office where he is responsible for covering market risk in European hours. He has over 25 years’ experience in foreign exchange, working in both sales and trading.