Steady Indicators
GBP: The British Pound rose briefly after UK inflation beat expectations, with June’s CPI climbing to 3.6% and core CPI to 3.7%. Strong services inflation curbs hopes for rapid interest rate cuts by the Bank of England, supporting Sterling in the short term. However, concerns over stagflation and weak UK economic growth limit longer-term Pound strength, keeping downward pressure on GBP exchange rates.
EUR: The Euro remained stable as Germany’s ZEW economic sentiment index surged to 52.7 in July, its highest reading in over three years. This better than expected data boosted confidence in the Eurozone’s economic outlook, supporting the Euro against major currencies. Ultimately, despite ongoing global uncertainties, the Euro showed resilience, benefiting from improved investor sentiment in the region’s largest economy and steady economic indicators across the bloc.
USD: The U.S. Dollar strengthened after June inflation data showed headline CPI rising 0.3% month-on-month and 2.7% annually, the highest since February. Core inflation hit 2.9%, slightly below expectations but still elevated. These figures reduce the likelihood of immediate Federal Reserve rate cuts, supporting the Dollar. Ultimately, despite a broader downtrend in 2025, resilient economic data and persistent inflation are helping the Dollar regain some footing in global markets.
If you would like to discuss your exchange rates, have any questions about the market or would like to learn more about how we could help, please get in touch.
T: +44 203 440 7550 | E: info@spectrumfx.co.uk | W: www.spectrumfx.co.uk
