Pound Sterling (GBP)

The British Pound has softened slightly against the Euro after a strong run through April and May. With no significant UK economic data scheduled for release this week, Sterling lacks a clear sense of direction. The currency is holding its ground despite a lack of immediate drivers, supported in part by improved medium-term growth prospects and recent trade agreements. Although momentum has eased against the Euro, the Pound has gained against a weaker Dollar.

Euro (EUR)

The Euro delivered a mixed performance last week, shaped by trade tensions, disappointing German economic data, and cooling inflation across the Eurozone. Although a pause in planned U.S. tariffs initially lent some support, rising unemployment and falling retail sales in Germany dampened investor confidence. With inflation continuing to ease, markets are now pricing in another interest rate cut, and expectations of further monetary loosening are the main factors deciding which way the Euro will go.

U.S. Dollar (USD)

The U.S. Dollar edged slightly lower amid ongoing uncertainty surrounding tariffs and conflicting economic signals. Comments from a Federal Reserve official indicating a willingness to consider rate cuts added to the downward pressure. Additionally, the temporary reintroduction of Trump-era tariffs and subdued inflation data have further muddied the economic outlook. As a result, investors are keeping a close eye on key indicators—particularly inflation and consumer spending—for clues on the Fed’s next policy move.