Pound Sterling (GBP)

The British Pound remained largely unchanged yesterday, despite weaker-than-expected UK retail sales figures. The BRC retail sales monitor for February recorded a modest 0.9% rise, significantly below the anticipated 2.4%. However, despite this disappointing outcome, Sterling remained stable against most major currencies. With no significant UK data scheduled for release today, GBP exchange rates are expected to move without a clear trend, influenced mainly by external factors.

Euro (EUR)

The Euro strengthened against most currencies despite weak economic data from Germany, including a drop in exports and a shrinking trade surplus. The single currency’s gains were largely due to a weakening US Dollar, benefiting from their inverse relationship. Looking ahead, investors are focused on upcoming speeches from ECB officials, with any hawkish signals potentially providing further support for the Euro.

U.S. Dollar (USD)

The US Dollar fell by 0.6% as recession concerns intensified, driven by weak economic data and President Trump’s uncertainty regarding a potential economic slowdown. Additionally, speculation about government layoffs, spending cuts, and trade tariffs added further pressure. Investors are now turning their attention to upcoming CPI inflation data and job vacancy figures for further economic insights, as they seek greater clarity on the outlook for the economy and interest rates.