Pound Sterling (GBP)
The British Pound recorded modest losses this morning against the Dollar but has gained some ground back against the Euro. With a scarcity of UK economic data, Sterling responded primarily to broader market sentiment, particularly shifts in expectations surrounding U.S. monetary policy. Overall, Sterling remains broadly stable but is likely to remain sensitive to external developments in the near term.
EURO (EUR)
The Euro came under pressure amid slowing growth across the Eurozone and a loss of momentum following earlier gains. A disappointing GDP reading and concerns regarding the U.S.–EU trade agreement have dampened investor sentiment. Additionally, technical market adjustments and the unwinding of long Euro positions have contributed to the currency’s decline.
U.S. Dollar (USD)
The U.S. Dollar strengthened following stronger-than-expected GDP growth in the second quarter, which supported the Federal Reserve’s decision to keep interest rates on hold. Notably, Fed Chair Jerome Powell refrained from signalling any clear intention to cut rates in September, leading markets to revise their expectations accordingly. The Dollar was further bolstered by easing trade tensions and persistent inflationary pressures. As a result, the Dollar has regained ground against major currencies, extending its short-term upward trajectory.