Pound Sterling (GBP)

The British Pound had a mixed performance last week. While stronger-than-expected inflation and wage growth data provided some support, its movement remained limited as markets focused on the Bank of England’s expected interest rate cuts in May. Ongoing concerns about tax increases and economic growth, along with the central bank’s monetary policy, continued to shape investor sentiment.

 Euro (EUR)

The Euro faced continued challenges, with fading optimism about peace talks in Ukraine and doubts about the European Central Bank’s ability to control inflation. Weak Eurozone PMI data added to the pressure, along with uncertainty over Europe’s role in discussions involving the U.S., Russia, and Ukraine. Although the Euro initially strengthened, political instability in Germany and economic concerns may curb further gains, increasing expectations of potential ECB rate cuts.

U.S. Dollar (USD)

The U.S. Dollar weakened due to disappointing economic data, including a slowdown in business activity and declining consumer confidence. The Dollar Index fell by 0.4% as worries over political instability and U.S. trade policies weighed on the currency. This downturn fuelled speculation about a possible economic slowdown in the U.S. and raised uncertainty about the Federal Reserve’s next moves.