Pound Sterling (GBP)
The British Pound regained ground against the US Dollar after a sharp losing streak, buoyed by a shift in market sentiment following disappointing US employment figures. This led to a technical rebound, providing the Pound with some short-term support. Nevertheless, broader concerns over the UK’s economic outlook and ongoing investor caution continue to weigh on its performance, leaving the Pound’s longer-term trajectory uncertain despite recent signs of stabilisation.
EURO (EUR)
The Euro strengthened as investors moved towards safer assets in response to weaker-than-expected US employment data, which sparked a global market sell-off. Despite initial pressure stemming from controversy around an EU-US trade agreement and mixed economic data from the Eurozone, the Euro rebounded later in the week. Its perceived status as a Dollar alternative and safe-haven currency ultimately supported its outperformance, highlighting its resilience amid growing global uncertainty and risk aversion.
U.S. Dollar (USD)
The US Dollar declined following Friday’s disappointing jobs report, which reignited speculation about a potential Federal Reserve rate cut in September. The data indicated a cooling labour market, prompting a reassessment of the Fed’s policy outlook despite lingering inflationary pressures. Further downward pressure came from concerns that tariffs imposed by former President Trump are weighing on economic growth. While the Fed remains cautious, the soft data has increased the likelihood of monetary easing, leaving the Dollar under renewed strain.