Pound Sterling (GBP)
Yesterday, the Pound was well supported after new figures showed the UK economy grew faster than expected in the last quarter. That upbeat news helped support confidence in the currency, although weaker business investment kept the gains from being too strong. This morning, traders are mostly in “wait-and-see” mode ahead of fresh U.S. retail sales and inflation expectations figures.
Euro (EUR)
The Euro slipped yesterday as strong U.S. PPI inflation data made the Dollar more attractive to investors, drawing attention away from Europe’s currency. With no major new data from the Eurozone this morning, the Euro’s movements are still being driven by developments in the U.S., especially upcoming retail sales and sentiment reports that could shift market mood.
U.S. Dollar (USD)
The Dollar strengthened noticeably against the Euro yesterday after U.S. inflation at the wholesale level came in higher than expected, leading markets to believe interest rates may stay higher for longer. That momentum has carried into this morning, with traders still focused on inflation data and what it might mean for the Federal Reserve’s next move.