Pound Sterling (GBP)

There is a growing expectation that the Bank of England will cut interest rates soon. This sentiment was reinforced after the UK’s latest economic data showed business activity slowing at the fastest pace in two years, raising concerns about the country’s growth prospects. Additionally, comments from key officials suggest the impact of US tariffs on the UK economy is a concern. As a result, the Pound’s recent rally has slowed but it has maintained most of its strength.

Euro (EUR)

The Euro has held relatively steady, with its strength this month being supported by investors seeking alternatives to the US Dollar. The European Central Bank’s decision to cut interest rates as expected did not surprise markets, but the bank’s warnings about a worsening economic outlook-mainly due to trade tensions have kept some caution in the air. Despite these concerns, the Euro has benefited from expectations of increased government spending in countries like Germany and from the perception that Europe’s economy, while slow, is relatively stable compared to other regions.

U.S. Dollar (USD)

The US Dollar has been under continued pressure. This weakness seems largely due to growing investor concerns about the US economy, including the risk of recession and ongoing uncertainty around trade policies and tariffs. Conflicting statements from US officials about potential tariff changes have added to the confusion. However, upcoming reports on employment and inflation could influence whether the Dollar stabilises or continues its downward trend.