Pound Sterling (GBP)

The British Pound weakened against the Euro yesterday, hitting its lowest point since January. It also experienced its steepest single-day drop in months due to growing market concerns over the UK economy and broader European financial developments. With no major UK economic data releases expected this week, the Pound’s movement will likely depend on overall market trends.

Euro (EUR)

Meanwhile, the Euro continued to strengthen, driven by Germany’s decision to increase spending on defence and infrastructure. This fiscal boost has improved investor confidence, making the Euro more appealing. As a result, the currency gained against both the Pound and the US Dollar, and analysts believe it may continue to rise as these economic reforms support growth across Europe.

U.S. Dollar (USD)

The US Dollar, on the other hand, slipped to a four-month low after President Trump eased trade tensions by offering tariff concessions to Canada and Mexico. This move increased investor appetite for riskier assets, reducing demand for the Dollar. Looking ahead, investors are focused on upcoming US labor data, particularly nonfarm payrolls, as strong job numbers could give the Federal Reserve more reason to maintain higher interest rates, which would help support the Dollar.