Pound Sterling (GBP)

The British Pound experienced a sharp rise against the US Dollar last week, recording its most significant weekly gain since November 2022. This increase was largely driven by a broad selloff of the Dollar, allowing the Pound to surpass key technical levels. However, the rapid surge has left the Pound in potentially overbought territory, indicating the possibility of a temporary pause or consolidation. While the overall outlook remains positive, a short-term pullback can’t be ruled out as a possibility.

Euro (EUR)

The Euro strengthened against other major currencies last week, supported by a €500 billion infrastructure investment plan in Germany. This initiative is expected to stimulate Germany’s economy, leading to improved growth forecasts and rising inflation. As a result, market expectations of European Central Bank interest rate cuts have diminished, further bolstering the Euro. However, its momentum could be challenged if the United States imposes trade tariffs on the EU, which may create setbacks.

U.S. Dollar (USD)

The US Dollar has faced sustained pressure due to a widespread selloff since early March. Expectations of interest rate cuts by the US Federal Reserve have increased, particularly following recent inflation data. February’s Consumer Price Index (CPI) figures will be closely monitored, as they could bring unexpected developments. Additionally, political uncertainty and concerns over trade tariffs, particularly those linked to former President Trump, have contributed to the Dollar’s volatility and recent decline.