Pound Sterling (GBP)

The British Pound weakened against several major currencies, including the Euro, amid persistent concerns over rising borrowing costs in the UK. These worries about the country’s financial stability have undermined confidence in the Pound, leading to its struggles against other currencies. Market sentiment remains cautious, with fears that the government may face challenges in effectively managing economic issues, adding further pressure on the currency.

Euro (EUR)

The Euro has shown signs of stabilization, with analysts suggesting that much of the negative outlook has already been factored into the market. Despite lingering concerns over potential rate cuts by the ECB, the Euro has managed to avoid further declines, aided by a correction in gas prices and favourable weather conditions. Additionally, expectations for rate cuts seem to have reached their peak, offering some support to the currency, even as broader market dynamics continue to pose challenges.

U.S. Dollar (USD)

The U.S. Dollar remained near its highest level in over two years, bolstered by hawkish signals from the Federal Reserve and optimism surrounding a robust nonfarm payrolls report. The Dollar’s strength was further reinforced by the Fed’s indication of slower rate cuts. As investors focus on the upcoming nonfarm payrolls data, the dollar index strengthened, maintaining its dominant position ahead of additional economic indicators.