Pound Sterling (GBP)
GBP: The British Pound faced challenges against major currencies yesterday, burdened by concerns over the UK’s fiscal stability following unexpectedly high borrowing figures. In the absence of fresh economic data to provide direction, the Pound struggled to build momentum, leaving it susceptible to shifts in market sentiment. Investor interest remained tepid, and the currency struggled to recover from recent losses, resulting in a lacklustre performance amid a quiet news cycle.
Euro (EUR)
EUR:The Euro also faced headwinds against most other currencies, pressured by speculation that the European Central Bank could speed up interest rate reductions. ECB policymaker Yannis Stournaras indicated that additional rate cuts might be necessary if the US imposes tariffs on the Eurozone. With no significant economic updates from the region, the Euro remained under strain and failed to gain upward momentum.
U.S. Dollar (USD)
USD: Meanwhile, the U.S. Dollar continued to decline after President Trump called for immediate interest rate cuts and ruled out broad-based import tariffs. His remarks could push the Federal Reserve toward a more accommodative stance, although market expectations still indicate only one rate cut for 2025. Additionally, Trump’s advocacy for lower global oil prices and more selective tariffs suggests the Dollar may weaken further as inflation eases.