Pound Sterling (GBP)

The British Pound remains stable despite last week’s cautious signals from the Bank of England. Notably, recent remarks from BoE member Catherine Mann on inflation and labour market conditions have provided more insight into the central bank’s position. However, uncertainty lingers regarding potential policy shifts, and markets are closely monitoring U.S. trade tariff developments for any potential effects on the Pound.

 Euro (EUR)

Meanwhile, the Euro has remained resilient despite concerns over U.S. import tariffs. Although the Eurozone’s large trade surplus with the U.S. makes the currency vulnerable to tariff threats, market reactions suggest a reduced impact as investors expect milder outcomes. Analysts believe that ongoing EU efforts could help cushion the Eurozone economy from the worst consequences of tariff risks.

U.S. Dollar (USD)

The U.S. Dollar stabilized ahead of key inflation data, following a tariff-driven surge earlier in the week. Although Federal Reserve Chair Jerome Powell downplayed the possibility of rate cuts, the Dollar found support from Trump’s 25% tariffs on aluminium and steel. Looking ahead, investors are closely watching upcoming U.S. inflation figures, anticipating steady readings and potential pressure on the Dollar amid ongoing inflation concerns.