Pound Sterling (GBP)

The British Pound has seen short-term gains and is anticipated to trend modestly higher against a range of currencies. However, its movement could be impacted by upcoming economic reports and statements from Bank of England officials. Concerns over the UK’s economic growth and increasing inflation pose challenges for the Pound. While there is potential for additional gains, risks persist due to economic stagnation and inflationary pressures, leading to an uncertain outlook.

 Euro (EUR)

The Euro remains under pressure amid ongoing concerns about economic growth and inflation. Although it has shown some recovery in recent weeks, it continues to struggle against the Pound, with the exchange rate at risk of moving sideways. While there is some potential for gains, economic challenges limit the Euro’s upside. Overall, market sentiment remains cautious, leaving the short-term outlook uncertain.

U.S. Dollar (USD)

The U.S. Dollar gained strength as markets reacted to President Trump’s announcement of tariffs on steel and aluminium imports, reversing losses from the prior week. The tariffs reignited fears of a global trade war, which supported the Dollar. Additionally, analysts cautioned that inflation driven by tariffs could lead to prolonged high U.S. interest rates.