Pound Sterling (GBP)

The British Pound regained significant ground against the U.S. Dollar following the London Summit where the UK, Europe and Ukraine discussed plans to put an end to the conflict and the need for US support. Looking ahead, trade developments, U.S. tariffs, and economic data will be key focal points this week. Some analysts are suggesting that the Pound may remain supported in the short term but anticipates pressure from the upcoming UK budget statement.

Euro (EUR)

The Euro strengthened against the U.S. Dollar yesterday, driven by optimism over potential peace talks between Ukraine and Russia. European leaders are at the forefront of efforts to broker a peace deal, which has contributed to the Euro’s recovery. However, inflation data and forthcoming European Central Bank decisions could influence the currency, with expectations of a rate cut to stimulate the struggling Eurozone economy.

U.S. Dollar (USD)

The U.S. Dollar stabilised after recent losses as investors awaited the imposition of higher tariffs by President Trump. These tariffs, targeting China, Canada, and Mexico, are expected to increase U.S. inflation but could benefit the Dollar in terms of trade and geopolitical interests. However, concerns over a potential economic slowdown and weakening consumer confidence have limited its support.