The GBP continues to trade on a bullish trajectory, buoyed by robust UK economic fundamentals and resilient consumer spending. Recent gains against major currencies highlight growing investor confidence as trade uncertainties ease. Strong retail sales and steady domestic demand further support the positive outlook. Overall, sentiment toward the pound is lifted by optimism over UK trade relations and improving market conditions.
The Euro held firm amid recent trade tensions, supported by positive market sentiment from ECB President Christine Lagarde who emphasised the currency’s expanding global role. Lagarde envisions leveraging the Euro’s strength to help anchor inflation and sustain low interest rates. However, internal political divisions across Europe pose potential challenges. While short term gains remain likely, analysts suggest that sustained momentum will hinge on future economic and policy developments.
The USD posted modest gains this week due to stronger than expected consumer sentiment and a rebound from recent declines. However, it remains under pressure amid persistent concerns over the fiscal deficit, trade tensions and uncertainty surrounding former President Trump’s tax/tariff policies. Analysts caution that without consistently strong economic data, the Dollar may face continued headwinds with downside risks still weighing on its outlook.
