Pound Sterling (GBP)

The Pound is currently stable, supported by stronger-than-expected economic growth in the first quarter (0.7%) and optimism about better UK-EU relations ahead of the May 19 summit. However, if the summit delivers little or if broader agreements are delayed, the Pound’s gains could be limited. Still, solid growth, a careful approach by the Bank of England, and calmer markets suggest there’s not much downside risk in the near term.

Euro (EUR)

The Euro is holding up well, thanks to lower U.S. inflation and improved global market sentiment. Analysts believe it could gain further, with technical trends backing this view. Confidence is also boosted by more global investors moving funds into European assets. While the Euro is still influenced by UK-EU political developments, the overall outlook remains positive to stable.

U.S. Dollar (USD)

The Dollar is under pressure due to weak inflation data and growing expectations that the Federal Reserve might cut interest rates. Added to this are concerns about tariffs causing slower growth and political efforts to weaken the currency, which have hurt its safe-haven status. Even with a pause in trade tensions with China, investors are wary. Analysts say structural challenges remain, making 2025 one of the Dollar’s weakest starts in over 50 years.