Pound Sterling (GBP)

The Pound has strengthened against both the Euro and Dollar. This momentum has been driven by hopes for a new trade deal between the UK and the US, as well as a generally positive mood among investors. This morning, UK consumer price index inflation figures came out slightly lower than expecting which fuels further speculation that the Bank of England may cut interest rates in May.

Euro (EUR)

Whilst the Euro remains a popular choice whilst the Dollar remains weak during uncertain times, the market awaits the European Central Bank’s upcoming interest rate decision. Economic confidence in Germany, Europe’s largest economy, has taken a hit due to concerns about US tariffs, and banks across the Eurozone are becoming more cautious about lending. With the ECB widely expected to cut rates soon, the Euro’s next moves will likely depend on how the central bank responds to these economic challenges and whether risk sentiment in markets improves.

U.S. Dollar (USD)

The US Dollar has been under pressure with weakness mainly due to concerns about the impact of new US tariffs and the possibility of slower economic growth. Investors have been moving money out of the US, looking for safer or more promising opportunities elsewhere. Although there was a small recovery in the Dollar early this morning as markets paused to assess the situation, uncertainty remains high. The Federal Reserve’s next steps and any updates on US trade policy will be closely watched for signs of stability or further volatility in the dollar.