Pound Sterling (GBP)

The British Pound is showing signs of recovery, helped by strong wage growth despite rising unemployment. It continues to advance against the Euro, though gains versus the Dollar are modest due to improving global sentiment following the US-China trade deal. While concerns about the labour market persist, robust earnings could potentially delay rate cuts. Overall, the Pound remains relatively stable, though lingering economic weaknesses may cap further upside.

Euro (EUR)

The Euro weakened across the board as global optimism grew following the US-China trade agreement, which bolstered risk appetite and supported the US Dollar. Upcoming data from the Eurozone—particularly Germany’s economic sentiment figures—could offer some relief if they come out better than expected. The Euro’s short-term outlook hinges on risk sentiment and key regional indicators.

U.S. Dollar (USD)

The US Dollar surged after news of a significant easing in trade tensions between the US and China lifted investor sentiment. The tariff reduction was viewed as a positive sign for global trade dynamics. Looking ahead, US inflation data will be closely watched, as it could further reinforce expectations of a more hawkish stance from the Federal Reserve.