European FX trading stayed muted on August 18 as a thin data calendar and an unresolved US-Iran standoff left markets in limbo. UK labour data showed a cooling job market while Germany's ZEW survey pointed to improving investor sentiment, and Qatar said mediators are still waiting on an Iran-Oman deal before wider US-Iran talks resume.
Trading desks had little to react to during the European morning, and the prolonged US-Iran stalemate has been a major reason for the quiet session. On the geopolitical front, Qatar said mediators are waiting for Iran and Oman to reach a bilateral agreement over the Strait of Hormuz before returning to broader US-Iran negotiations. That standoff keeps inflation risks skewed to the upside and keeps risk sentiment on the defensive.
Britain's labour market added to the cautious tone. Private-sector wage growth slowed to 2.8%, its weakest pace since 2020, while unemployment held at 4.9% and vacancies kept declining. For the Bank of England, the data reinforces a neutral stance as policymakers balance persistent inflation risks against a softer labour market.
Germany's data ran the other way. The August ZEW survey showed investor sentiment improving further, with expectations turning more optimistic across autos, chemicals and engineering. However, the assessment of current conditions stayed deeply negative at -61.1, better than the -69.5 expected.
Source: Investinglive RSS Breaking News Feed
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