Pound Sterling (GBP)

The British Pound declined following weaker-than-expected UK retail sales and PMI figures. Retail sales for June rose by only 0.9%, falling short of the 1.2% forecast, while July’s PMI disappointed the market. These results prompted a negative market reaction, with Sterling losing ground against both the Euro and the Dollar. Ongoing concerns such as rising unemployment, increased payroll taxes, and growing expectations of interest rate cuts from the Bank of England have added to the downward pressure.

Euro (EUR)

The Euro gained strength after Eurozone PMI data climbed to an 11-month high, surpassing expectations and contrasting with the UK’s weaker performance. This positive surprise helped the Euro outperform the Pound. Although some near-term headwinds persist—such as improving global trade sentiment and a firmer Sterling—the Euro has shown resilience. Additionally, the European Central Bank opted to hold interest rates steady, signalling the possibility of future reductions.

U.S. Dollar (USD)

The US Dollar edged higher on the back of better-than-expected jobless claims and robust services PMI data. However, these gains remain fragile amid political pressure on the Federal Reserve. President Trump’s renewed criticism of Fed Chair Jerome Powell and questions surrounding the Fed’s independence continue to weigh on investor sentiment. While easing trade tensions provide some short-term support, ongoing uncertainty and the prospect of future rate cuts have put pressure on the Dollar.