Pound Sterling (GBP)

The British Pound has weakened and is nearing its lowest levels of 2023 against the U.S. Dollar. While the currency appears oversold, it’s unlikely to see a strong recovery unless there’s a policy shift in the UK. Economic challenges such as stagnation, rising unemployment, and increasing debt are dragging down the Pound, with key data this week potentially impacting its short-term movements.

Euro (EUR)

Meanwhile, the Euro has made significant gains against the Pound, bolstered by concerns over the UK’s economic struggles, including mounting debt and inflation. As UK growth falters and unemployment rises, the Euro has remained steady. Although the Pound may see brief periods of stability, the Euro is expected to hold its strength due to ongoing uncertainty in the UK economy.

U.S. Dollar (USD)

The U.S. Dollar has gained momentum after stronger-than-expected payroll data last Friday, raising expectations that the Federal Reserve may delay significant interest rate cuts in 2025 and keep rates elevated for longer. This pushed the Dollar index to its highest point in nearly two years. In the coming days, inflation data and comments from Federal Reserve officials will likely provide further clarity on future rate policies.