Pound Sterling (GBP)

The British Pound saw a sharp decline after the Bank of England cut interest rates and downgraded its growth forecast. Additionally, inflation expectations were raised, fuelling concerns about stagflation. This led investors to anticipate further rate cuts. Ultimately, the pound experienced its steepest drop in weeks, highlighting the UK’s economic challenges.

 Euro (EUR)

The Euro strengthened as expectations of a steady economic recovery in the Eurozone provided support. Analysts predict that the Euro will maintain its upward trend due to the European Central Bank’s cautious monetary policy. With improving growth prospects and inflation trends playing a key role, the Euro is expected to continue appreciating against other currencies in the near future.

U.S. Dollar (USD)

The U.S. Dollar remained stable ahead of the release of nonfarm payrolls data, which investors anticipated would reflect a strong labour market. Despite mixed signals from President Trump regarding trade tariffs, the dollar index held steady, though it recorded some losses for the week. A resilient labour market allows the Federal Reserve to keep interest rates unchanged, which may put pressure on other currencies.