Pound Sterling (GBP)

The British Pound struggled to make gains against major currencies, including the Euro. The Pound to Euro exchange rate fell to a five-week low, with limited movement due to a lack of significant economic data. Despite the Bank of England’s hawkish remarks, Sterling remained largely unchanged, with little direction expected until the release of upcoming economic reports.

Euro (EUR)

The Euro strengthened following the ECB’s 25-basis point rate cut and hawkish comments from ECB President Lagarde, indicating limited room for further reductions. Despite the rate cut, Lagarde’s emphasis on a “data-driven” approach to future decisions boosted the Euro. While geopolitical tensions and downside risks to growth persist, infrastructure investment may support economic expansion and inflation, improving the Euro’s outlook.

U.S. Dollar (USD)

The U.S. Dollar remained near a four-month low, weighed down by concerns over a potential economic slowdown in the U.S. and uncertainty surrounding Trump’s policies, including tariffs. Looking ahead, today’s nonfarm payrolls data is expected to provide crucial insights into the labour market. Any signs of economic cooling could put further pressure on the greenback.