Pound Sterling (GBP)

The Pound remained relatively steady, with investors watching closely for signs of how the UK economy is handling ongoing inflation concerns. A quiet day on the data front yesterday with the bank holiday meant traders were focused on upcoming comments from Bank of England officials, trying to gauge when interest rates might start to come down. This morning, the Pound saw some slight movement as markets reacted to early reports suggesting mixed consumer sentiment, but overall, it held its ground.

Euro (EUR)

The Euro faced mild pressure yesterday as markets responded to weaker-than-expected data from parts of the Eurozone, hinting at slower economic momentum. Investors are still debating whether the European Central Bank might begin cutting interest rates soon to support growth. This morning, the Euro stabilised somewhat, helped by better news from Germany’s export sector, though broader concerns about the region’s recovery still weigh on sentiment.

U.S. Dollar (USD)

The US Dollar saw some strength yesterday, largely driven by market uncertainty and a cautious tone from the Federal Reserve, which is still not in a hurry to lower interest rates. Investors continue to focus on economic signals like job growth and inflation to anticipate the Fed’s next move. Data has suggested that the US services sector staying resilient, adding to the narrative that the economy may not be cooling as quickly as some expected.