Pound Sterling (GBP)

The British Pound could face challenges as the Bank of England prepares to cut interest rates, with a 25-basis point cut expected, followed by two more in 2025. This dovish approach may weaken the GBP, particularly against the Euro and Dollar, as economic growth slows. While short-term fluctuations are likely, some negative expectations are already reflected in the market, meaning the Pound could see a rebound later in February.

 Euro (EUR)

The Euro remains under pressure due to ongoing interest rate cuts by the European Central Bank and economic struggles within the region. Many analysts have a pessimistic outlook, further fuelled by uncertainty surrounding trade policies and broader global economic trends. While short-term predictions remain negative, there is potential for recovery as economic conditions shift.

U.S. Dollar (USD)

The U.S. Dollar’s recent uptrend has stalled after the Trump administration postponed tariffs on Canada and Mexico, causing the Dollar Index to dip slightly. This has led investors to revaluate their positions amid trade uncertainty. While there has been an immediate pullback, the Dollar’s future remains uncertain, depending on evolving market conditions and policy decisions.