Pound Sterling (GBP)

The Pound continued its steady climb yesterday and into this morning, extending a rally that has been largely driven by broader shifts in global currency markets rather than UK-specific news. Despite the release of weaker-than-expected inflation data from the UK, which showed inflation slowing more than anticipated, demand for the Pound has remained robust. This resilience is occurring even as speculation grows that the Bank of England may soon consider lowering interest rates to support the economy.

Euro (EUR)

The Euro has shown some signs of weakness this morning after a period of relative stability yesterday. Market participants are largely holding back ahead of a key European Central Bank (ECB) meeting later today, where a cut in interest rates is widely expected. This anticipated move comes as the ECB shifts its focus from inflation, which is now less of a concern, to supporting economic growth amid ongoing trade tensions.

U.S. Dollar (USD)

The US Dollar has continued to lose ground against both the Pound and the Euro, with its recent weakness tied mainly to uncertainty and concerns over US trade policy. The currency market has been unusually sensitive to political developments, particularly actions and statements from the US administration regarding tariffs and trade relations. As a result, traditional economic indicators and news have had less influence on the Dollar’s value than usual. Investors are watching closely for any signs of escalation or de-escalation in trade disputes.