Pound Sterling (GBP)

The British Pound is experiencing mild pressure ahead of key U.S. inflation figures, yet it retains a broadly positive outlook. Confidence is supported by the IMF’s upgraded UK growth forecast and diminished expectations of imminent interest rate cuts by the Bank of England. Additionally, upbeat UK retail sales data and easing Brexit-related trade tensions continue to bolster sentiment. Overall, despite a recent period of consolidation, the Pound remains resilient in the face of external uncertainties.

Euro (EUR)

The Euro recovered after initial weakness, helped by a reduction in U.S.-EU trade tensions and a court decision that temporarily reinstated U.S. tariffs. Despite mixed German retail figures and ongoing inflation uncertainty, the Euro managed to outperform several major currencies. Further support came from expectations that the European Central Bank will continue normalising its monetary policy. All things considered, in an environment marked by global trade uncertainty, the Euro has proven resilient and remains a preferred choice in risk-averse markets.

U.S. Dollar (USD)

The U.S. Dollar slipped slightly after an appeals court reinstated tariffs introduced during the Trump administration, partially reversing earlier gains. Ongoing legal uncertainty, fiscal concerns, and the prospect of a slowing economy have continued to weigh on the currency. As it stands, the Dollar is set for a fifth consecutive monthly decline. Looking ahead, markets are focused on the upcoming PCE inflation data – the Federal Reserve’s preferred measure – which could influence expectations around future interest rate decisions.