Daily FX Report – Prolonged Uncertainty

Pound Sterling (GBP)

The British Pound is staying strong against the U.S. Dollar, helped by better
market sentiment and a weaker Dollar. Ongoing uncertainty around U.S. economic and trade policies has shaken confidence in the Dollar, allowing the Pound to gain ground. While there’s talk of possible interest rate cuts from the Bank of England that could slow its rise, the Pound is still benefiting from changes in global risk appetite and how investors are adjusting their positions.

Euro (EUR)

The Euro is holding steady, thanks to stability within the Eurozone and cautious optimism about its economic resilience. As global markets deal with
uncertainty, investors are leaning toward safer, well-established currencies
like the Euro. Confidence in the European Central Bank’s careful approach,
along with signs of recovery in major economies like Germany, is helping to
keep the Euro supported despite ongoing global risks such as trade tensions and inflation.

U.S. Dollar (USD)

The U.S. Dollar is struggling due to continued uncertainty in government policy, especially around tariffs on Chinese goods. Mixed messages from the White House have shaken market confidence and increased volatility. Although there was a brief boost after initial signs of tariff reductions, that gain didn’t last. Overall, the Dollar remains on shaky ground as markets react to inconsistent signals and rising doubts about the direction of U.S. economic policy.