The GBP strengthened notably against the USD, buoyed by a weaker greenback amid trade tensions, shifting investor sentiment as well as uncertainty over U.S. economic policies. Analysts suggest further gains are possible, supported by the UK’s relatively lower tariff exposure and improving global market sentiment. Although resistance levels may temper its rise, GBP remains well-supported and could continue trending upward in the near term as we potentially close in on 1.3500.
The Euro firmed midweek, supported by a softer USD and stable Eurozone PMI figures, despite a slight decline in the services sector. In contrast to the UK’s sharp PMI drop, the Eurozone’s resilience bolstered confidence in the single currency. Investor interest also grew amid indications of U.S. capital repatriation. Looking ahead, the Euro’s direction may hinge on Germany’s upcoming Ifo index and broader economic data strength. At this point in time, the Euro is going nicely as we continue trading at the recent highs.
The USD is under increasing pressure from several directions, including worries about the economic fallout from tariffs, political meddling in monetary policy and growing doubts over the stability of U.S. assets. As investor confidence weakens, the USD has struggled to gain lasting momentum despite brief recoveries. Analysts now warn of deeper structural risks and a potential long-term decline which is driven by a global move away from U.S. financial dominance and toward alternative reserve currencies such as the EURO.
Will Trumps U turn on China’s tariffs bolster the US market?
