Risk Sensitivity
GBP: The British Pound has found some support after UK wage growth surprised on the upside. While job numbers showed a further decline in payrolled employment, earnings growth remained firmer than expected, helping offset the negative headline. This has eased pressure on sterling, as the data reduces the likelihood of near term policy changes. Attention now turns to UK inflation figures due on Wednesday, which will be the next key test for the Pound.
EUR: The Euro has weakened as investors respond to renewed trade tensions with the US Tariff threats tied to Greenland have unsettled markets and pushed investors toward a more defensive stance. With sentiment fragile and headlines driving moves, the Euro will likely to remain sensitive to further political developments rather than economic data in the near term.
USD: The US Dollar is softer despite a clear risk-off tone in markets. Escalating comments from President Trump, including tariff threats and warnings directed at European allies, has unsettled investors and weighed on the Dollar index. While equity markets have moved lower, the Dollar has not seen strong safe-haven demand so far, suggesting markets are watching developments closely but remain measured for now.
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
