Pound Sterling (GBP)

The British Pound has been under pressure due to global trade tensions. While it stabilised slightly on Tuesday after a period of volatility, concerns remain about the impact of U.S. tariffs on UK exports. The UK government is working to strengthen economic ties with the U.S., but uncertainty around trade agreements and potential fiscal adjustments continues to weigh on sentiment. Investors are also cautious ahead of upcoming GDP data, which could provide further clarity on the UK’s economic resilience amid these challenges.

Euro (EUR)

The Euro has shown some resilience despite escalating tariff disputes between the U.S. and the EU. European markets rebounded on Tuesday, which provided some support to the currency. However, tensions remain high as EU officials prepare a response to U.S. tariffs, with fears of further economic strain in the region. Political developments in Germany, including a coalition agreement, have added a touch of optimism, but the broader outlook remains clouded by trade uncertainties.

U.S. Dollar (USD)

The U.S. Dollar weakened against safe-haven currencies like the Japanese Yen and Swiss Franc as investors reacted to the announcement of steep tariffs on Chinese imports. Concerns about a potential U.S. recession and rising Treasury yields have added to the pressure on the dollar. Market participants are now closely watching upcoming inflation data and Federal Reserve meeting minutes, as expectations for rate cuts this year have increased significantly.