Pound Sterling (GBP)
The British Pound has recently come under pressure amid cautious market sentiment and growing expectations of a 25-basis point interest rate cut by the Bank of England. Nevertheless, stronger UK services data and appealing valuations have prompted some analysts to take a more optimistic stance. Overall, the Pound is struggling to gain against a stronger Euro but has seen some mixed performance against a volatile Dollar.
Euro (EUR)
The Euro presents a mixed outlook amid disappointing economic data and policy ambiguity. Notably, the eurozone services PMI was revised downward, with export activity declining for the 26th consecutive month. While German factory orders and retail sales may provide limited short-term support, concerns persist regarding additional rate cuts by the European Central Bank. However, demand for the Euro remains high as a safe-haven asset in the current geopolitical climate which has meant it has kept its strength against the Pound.
U.S. Dollar (USD)
The US Dollar experienced only modest gains despite safe-haven interest, as soft payroll figures and indications of a slowing labour market have strengthened expectations of a Federal Reserve rate cut in September, currently priced at nearly 86%. Although the Dollar briefly gained on robust GDP data, it later gave up those gains. Overall, the Dollar remains under pressure.