Pound Sterling (GBP)

The British Pound has recently weakened against the U.S. Dollar, partly due to a softer U.S. inflation report. However, the Pound’s overall trend remains positive. While the UK’s fiscal challenges may make investors more cautious, the currency is also influenced by global market trends. Despite short-term ups and downs, the outlook for the Pound remains cautiously optimistic.

Euro (EUR)

The Euro held steady as investors evaluated Europe’s response to new U.S. tariffs on steel and aluminium. The European Commission criticized the tariffs as disruptive and announced retaliatory measures, including new tariffs on U.S. goods starting next month. The Euro’s movement was also shaped by broader global factors, such as U.S. inflation data, which could affect future economic policies.

U.S. Dollar (USD)

The U.S. Dollar strengthened after bouncing back from a five-month low, despite weaker-than-expected inflation data for February. While inflation remains persistent, the cooler report gives the Federal Reserve more flexibility to consider interest rate cuts. The Dollar also found support from concerns over new steel and aluminium tariffs. Investors are now watching the upcoming PPI data for further clues on inflation and economic trends.