Pound Sterling (GBP)

The British Pound experienced mixed performance yesterday, beginning on a strong note before encountering volatile trading. Despite last week’s upbeat employment and inflation data, investor sentiment remained subdued due to concerns over sluggish economic growth and the possibility of a Bank of England rate cut. This week, attention turns to the Confederation of British Industry’s retail sales survey, where a potential decline in retail activity could weigh on the Pound. Ultimately, Sterling’s movement will likely continue to be driven by broader market sentiment and shifts in the economic outlook.

 Euro (EUR)

The Euro gained strength following Germany’s election results, as the performance of populist parties remained in line with expectations, boosting confidence in a grand coalition. Analysts suggest this outcome could have a positive effect on Germany’s economy. However, challenges persist, with the incoming government needing to address complex issues such as relations with Ukraine and trade policies.

U.S. Dollar (USD)

The U.S. Dollar remained subdued in yesterday’s session, extending recent declines due to weak economic data. A February survey indicated that U.S. business activity nearly stagnated, while consumer sentiment fell to its lowest level in 15 months. Investors are now focusing on upcoming economic reports, particularly the personal consumption expenditures price index, a key inflation measure closely watched by the Federal Reserve.