Pound Sterling (GBP)
The Pound is under pressure amid rising political uncertainty after Andy Burnham hinted at a challenge to Keir Starmer. Investors are concerned about Burnham’s plans for large-scale welfare spending and borrowing, which remind markets of previous policies that weakened Sterling. His casual attitude toward financial constraints has unsettled confidence, leaving the Pound vulnerable against major currencies amid worries about the sustainability of UK fiscal policy.
Euro (EUR)
The Euro fell this week, dragged down by strong U.S. economic data and a firmer Dollar. Gains in German consumer confidence offered limited relief and couldn’t change the broader negative sentiment. Political uncertainty in parts of the Eurozone, particularly in France, added to the pressure. Still, expectations that the ECB may pause further rate cuts provided some support. The Euro remains sensitive to upcoming economic reports and policy signals.
U.S. Dollar (USD)
The Dollar strengthened following strong U.S. economic data, including solid growth, durable goods orders, and falling jobless claims. Federal Reserve Chair Powell highlighted inflation uncertainty and indicated no rush to cut rates further, countering market expectations of rapid easing. As a result, the Dollar rebounded after an initial drop post-rate cut, as investors recalibrated their outlook on the Fed’s policy path.