Pound Sterling (GBP)

The British Pound remained steady after a strong rally against the U.S. Dollar but a sharp decline against the Euro. Investor confidence in the Bank of England’s restrictive policy remains firm, driven by strong wage growth fuelling inflation in the services sector. Looking ahead, traders are watching upcoming UK economic data, including GDP and factory output, to gauge economic resilience.

Euro (EUR)

The Euro gained traction after Germany announced a fiscal stimulus package, signalling a shift toward growth priorities over concerns about U.S. tariffs. While these measures may soften the tariff impact, the Euro’s rally could be limited as market sentiment moves away from the Dollar amid broader economic uncertainty.

U.S. Dollar (USD)

The U.S. Dollar weakened due to growing concerns over a global economic slowdown and rising trade tariffs, pushing the Dollar index to a four-month low. Speculation about a potential U.S. recession, along with weak labour market and consumer sentiment data, contributed to the decline. Investors are now looking to upcoming U.S. inflation data for further clues on the economic outlook and potential interest rate adjustments.