Euro and Pound Await Macro Catalysts

The euro and pound have seen subdued moves against the US dollar in recent trading sessions.

Market participants are holding back from establishing new positions ahead of key macroeconomic data releases that could alter expectations for monetary policy.

Tonight, Germany's annual consumer price index is forecast to accelerate to 2.9% from 2.8%, which could reinforce the European Central Bank's plans for further tightening and support the euro.

However, tomorrow's US inflation data will be a major focus as headline CPI is expected at 3.4% year-on-year and 0.4% month-on-month.

The pound will also be sensitive to UK GDP data, with July's forecast showing no growth despite expectations of a recovery in manufacturing output.