The EUR/GBP pair remains subdued, hovering around 0.8330, as investors eye preliminary Eurozone inflation figures for fresh direction. European Central Bank (ECB) President Christine Lagarde's speech on Monday hinted at potential rate cuts in October, signalling the bank’s growing confidence in cooling inflationary pressures following the release of recent economic data. The headline Harmonised Index of Consumer Prices (HICP) is forecasted to increase by 1.9% year-on-year in September, while the Core HICP is estimated to rise by 2.9% year-on-year in the same period. On the Pound front, the Bank of England's (BoE) gradual approach to easing the monetary cycle, compared to other central banks, could support the GBP. Rising bets on ECB rate reductions and Eurozone CPI could significantly impact the EUR/GBP pair in the upcoming trading sessions.

EUR/USD Struggles Ahead of Eurozone CPI and US Macro Data

The EUR/USD pair struggles below the mid-1.1100s following Monday's hawkish remarks by Federal Reserve (Fed) Chair Jerome Powell, suggesting two more 25 basis point interest rate cuts this year if the economy performs as expected. Additionally, geopolitical tensions in the Middle East and broader regional disputes could bolster the safe-haven Greenback. In the Eurozone, anticipations of the Consumer Price Index (CPI) declining below the European Central Bank's (ECB) 2% target for September could reaffirm market sentiment for a 25 basis point rate cut at the next ECB policy meeting in October. The US economic docket—including ISM Manufacturing PMI, JOLTS Job Openings data, and influential FOMC members' public addresses—will influence EUR/GBP further in the coming sessions.

GBP/USD Muted Ahead of US PMI Data

The GBP/USD pair lost momentum following Monday's hawkish stance by Fed Chair Jerome Powell, which supported the Greenback. Additionally, Atlanta Fed President Raphael Bostic's speech on Monday indicated another 50 basis point rate reduction in November, steering market sentiment. On the Pound side, BoE policymaker Megan Greene hinted at a dovish monetary policy, leading to an interest rate differential between both currencies. Today's US September ISM Manufacturing Purchasing Managers Index (PMI) data and speeches from the Fed's Raphael Bostic and Lisa Cook will drive the GBP/USD price dynamics. However, due on Friday, US labour market data will be a crucial driver for further interest rate cuts, which may exert some selling pressure on the USD.

AUD/USD Buoyed by Robust Aussie Retail Sales Data

The AUD/USD pair gained momentum following better-than-expected Retail Sales data. The Australian Bureau of Statistics (ABS) reported that Australia's consumer spending rose 0.7% month-on-month in August, exceeding forecasts of a 0.4% increase. Additionally, the hawkish market sentiment surrounding the Reserve Bank of Australia (RBA) could further uplift the AUD. Upcoming JOLTs Job Openings Report, ISM Manufacturing PMI, and central bank commentary may influence AUD/USD price movements.

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