Pound Sterling (GBP)

The Pound has slipped slightly as investors expect the Bank of England to take a cautious approach due to signs of a slowing economy and changing interest rate outlook. While the Pound previously gained from market stability and a favourable rate difference with the eurozone, that momentum has now diminished. Growing worries about quicker policy easing and potential economic downturn are starting to outweigh the benefits of the UK’s higher interest rates.

Euro (EUR)

The Euro has remained stable even in the face of weak economic indicators, such as a significant drop in producer prices that has increased expectations for European Central Bank rate cuts. Although factory orders might improve, lower retail sales could dampen confidence. Mixed economic signals from the Eurozone have kept the Euro from making strong gains, though it continues to hold its ground against other major currencies for now.

U.S. Dollar (USD)

The U.S. Dollar has gained strength ahead of an important Federal Reserve announcement, helped by demand for safer assets amid geopolitical tensions and renewed hope for progress in U.S.-China trade relations. While the Fed is likely to keep rates unchanged, investors are focused on any clues about future policy direction. Despite pressure from President Trump for rate cuts, steady inflation and ongoing trade uncertainty may lead the Fed to remain cautious.