The British Pound continued to face downward pressure during yesterday’s trading session, even as global risk sentiment showed signs of recovery. The GBP/USD exchange rate slipped to a one-month low, with additional declines anticipated before any potential stabilisation. Meanwhile, the Pound also dropped to an eight-month low against the Euro due to mounting domestic concerns and particularly expectations of interest rate cuts by the Bank of England.
The Euro gained ground against both the U.S. Dollar and the British Pound, supported by ongoing global uncertainties. Despite market volatility, the common currency benefited from shifting investor sentiment and a renewed appetite for risk. This upward move reflected a broader search for relative safety amid concerns over trade tensions and economic disruptions, positioning the Euro as one of the more resilient currencies in the current landscape which has led to the Euro has gaining over 3% against its counterparts.
The USD fell by 0.7% during last night’s trading session which was weighed down by escalating global tensions, most notably the intensifying US-China trade dispute with the Trump administration confirming a 104% tariff. Renewed fears of a full-scale trade war, fueled by impending tariffs, heightened market volatility. At the same time, increasing speculation that the Federal Reserve could implement multiple rate cuts this year added further pressure as concerns over the stability of the U.S. economy deepened which has relayed into the US stock market.
