Pound Sterling (GBP)

Yesterday, the British Pound experienced modest movement as the Bank of England decided to maintain its interest rate at 4.5%, citing persistent inflation and global uncertainties. This decision reflects the bank’s cautious approach to easing monetary policy amid concerns about stagflation in the UK economy. While the Pound showed resilience earlier in the week, it faced pressure from weaker-than-expected economic growth figures and broader market sentiment tied to global tariff disputes.

Euro (EUR)

The Euro remained under pressure yesterday and this morning due to escalating trade tensions between the EU and the US. President Trump’s proposal for steep tariffs on European alcohol exports has raised concerns about a potential trade war, which could hurt European growth. Additionally, comments from ECB President Christine Lagarde highlighted that retaliatory measures might deepen economic challenges for the eurozone. Despite these headwinds, the euro showed some stability, supported by ongoing discussions around infrastructure spending in Germany.

U.S. Dollar (USD)

The US Dollar gained slightly yesterday as the market reacted to the Federal Reserve’s decision to keep interest rates steady. The Dollar’s strength was bolstered by stable Treasury yields and cautious market sentiment ahead of key economic data releases. However, ongoing tariff disputes with Canada and the EU have created a volatile environment in the currency markets.