GBP: The British Pound has gained support from the Bank of England’s cautious approach to reducing interest rates. Governor Andrew Bailey confirmed expectations for four rate cuts in 2025, aligning with the OECD’s projection that UK inflation will remain above target. With UK interest rates staying higher than those in the Eurozone and the US, the Pound’s outlook remains positive.

EUR: The Euro has demonstrated stability despite political upheaval in France, where Prime Minister Barnier was removed after failing to pass a critical finance bill. Market reaction to the political developments was minimal, and the Euro’s value held steady. However, uncertainty in France and a fragmented parliament continue to limit the Euro’s potential for significant gains. While the European Central Bank’s support for France’s debt mitigates immediate crisis risks, it also constrains the Euro’s upward momentum.

USD: The U.S. Dollar strengthened during the last trading session, with the Dollar Index rising to 106.47. The greenback benefited from its status as a safe haven amid political instability in Europe and South Korea, as well as ongoing global conflicts. Analysts at ING emphasized the Dollar’s attractiveness due to high interest rates and liquidity, positioning it as a preferred asset for preserving cash during uncertain times.