Pound Sterling (GBP)

The British Pound is under pressure due to uncertainty surrounding potential tax increases and spending cuts. Analysts believe the government’s limited financial flexibility may lead to further tax hikes in the autumn, raising concerns among businesses and consumers. Additional risks, such as economic stagnation and changes in employment laws, contribute to a negative outlook for the Pound in the coming months.

Euro (EUR)

Meanwhile, the Euro has remained strong despite worries over trade tariffs. It has been one of the top-performing G10 currencies recently, reflecting market optimism. However, some analysts caution that this strength may not be sustainable, as investors might be overlooking potential risks, including tariffs on EU exports.

U.S. Dollar (USD)

The U.S. Dollar weakened against major currencies yesterday following concerns about President Trump’s tariff announcements, which reignited fears of an economic slowdown. However, market caution helped limit losses. The USD Index hovered below 104.50, and inflation (PCE) is expected to hold steady at 2.5%. The Dollar’s future movements will largely depend on upcoming U.S. economic data