Pound Sterling (GBP)
The British Pound showed little movement, influenced by UK Chancellor Rachel Reeves’ speech detailing economic growth plans, including a “Silicon Valley” between Oxford and Cambridge and a third runway at Heathrow. However, business sentiment remains weak due to tax increases from the previous Budget. Ultimately, the Pound’s trajectory will be shaped by broader market trends and upcoming Eurozone economic data.
Euro (EUR)
The Euro held steady during yesterday’s session as investors awaited the European Central Bank’s interest rate decision, with a 25-basis point cut anticipated. Its direction will hinge on the ECB’s forward guidance—further easing could weigh on the currency, while a more hawkish stance may curb losses. Market participants will closely analyse ECB President Christine Lagarde’s comments for insights into future policy and the Eurozone’s economic outlook.
U.S. Dollar (USD)
The U.S. Dollar remained stable following the Federal Reserve’s decision to maintain interest rates, signalling no imminent cuts. The Dollar Index found support from expectations of a slower pace of rate reductions in 2025 and concerns over tariffs linked to President Trump’s policies. Despite market volatility driven by tariff fears and geopolitical tensions, the Dollar remained strong, with analysts predicting further firming in the near term.