Pound Sterling (GBP)

The British Pound gained strength following positive UK employment data. It rose against both the Euro and the Dollar, driven by unexpected stability in the UK unemployment rate. Strong wage growth also contributed, reducing the likelihood of the Bank of England lowering interest rates soon. However, inflation concerns continue to influence market expectations for future rate cuts.

 Euro (EUR)

The Euro struggled despite better-than-expected trade data from the Eurozone, which showed a smaller decline in the trade surplus. The currency failed to attract significant investor interest, weighed down by an upbeat market sentiment and its status as a safe-haven asset. As a result, the Euro remained subdued against most major currencies, with little movement despite encouraging economic indicators.

U.S. Dollar (USD)

The U.S. Dollar strengthened amid renewed concerns over tariffs and global trade tensions. The Dollar Index rose 0.2%, recovering from last week’s losses, as investors turned to safe-haven assets. Market expectations of sustained high U.S. interest rates, following recent inflation data, further supported the Dollar’s rebound.