Pound Sterling (GBP)

The Bank of England reduced interest rates to by 0.25% to 4.25% yesterday, aiming to support the UK economy amid global trade tensions, particularly those stemming from US tariffs. This decision followed a divided vote among policymakers, reflecting uncertainty about the UK’s economic outlook. Additionally, a new trade agreement between the UK and US was announced, which lowers tariffs on certain UK exports like cars and steel but raises them on other goods entering the US.

Euro (EUR)

The Euro remained relatively stable, with investors awaiting further economic data from the Eurozone. While there was some positive news from Germany’s manufacturing sector, concerns about broader economic performance and potential interest rate cuts by the European Central Bank kept the euro’s movements limited. The Euro’s performance was also influenced by the strength of the US dollar, which has been bolstered by recent economic indicators.

U.S. Dollar (USD)

The US Dollar strengthened against several major currencies, supported by a robust economy and expectations that the Federal Reserve may not rush to cut interest rates. Positive developments, such as the new trade deal with the UK, boosted investor confidence. However, some caution remains due to ongoing trade tensions and their potential impact on global economic growth.