Pound Sterling (GBP)

The British Pound posted slight gains on the back of optimism around a possible UK–U.S. trade agreement, strengthening against the Euro while staying flat versus the Dollar. Support for GBP/EUR came from improved investor sentiment and easing global volatility, though GBP/USD was largely unchanged due to ongoing Dollar resilience. Investors remain cautious ahead of the Bank of England’s upcoming rate decision today, with attention focused on any forward guidance that could influence short-term Pound direction.

Euro (EUR)

The Euro edged up slightly after stronger-than-expected German factory output, though gains were tempered by weak retail data and persistent political uncertainty. Momentum across the broader Eurozone appears to be losing steam, making the currency more vulnerable to shifts in global market mood. Traders remain hesitant as mixed economic indicators and a cautious stance from the European Central Bank create uncertainty, particularly in light of developments in U.S. policy and trade.

U.S. Dollar (USD)

The U.S. Dollar remained stable following the Federal Reserve’s decision to hold interest rates steady and signal a continued cautious, data-driven approach. Despite a brief decline in early European trading, the Dollar maintained its strength versus major currencies such as the Euro and the Pound. Strong U.S. economic data and Fed Chair Powell’s “wait-and-see” message reinforced support for the greenback.