Pound Sterling (GBP)

The British Pound has experienced a challenging period as weaker-than-expected UK inflation data weighed on its performance. February’s annual inflation rate softened to 2.8%, falling short of market expectations. This dampened demand for the currency, as investors interpreted it as increasing the likelihood of interest rate cuts by the Bank of England. Additionally, broader concerns about the UK’s economic growth and manufacturing output contributed to the Pound’s subdued sentiment.

Euro (EUR)

The Euro faced pressure amid a stronger U.S. Dollar, which gained momentum following the announcement of new U.S. auto tariffs. These tariffs heightened global trade uncertainties, making the Dollar more attractive as a safe-haven currency. The Euro briefly dipped to a three-week low before recovering slightly. Dovish commentary from European Central Bank officials also added to the Euro’s struggles, as investors questioned the pace of monetary tightening in the Eurozone.

U.S. Dollar (USD)

The U.S. Dollar strengthened nearing a three-week high, supported by rising Treasury yields and renewed safe-haven demand after President Trump announced tariffs on auto imports. This move increased concerns about global trade tensions and inflation risks, boosting the Dollar’s appeal. Stronger-than-expected U.S. economic data further reinforced confidence in the Dollar.