Global Risk
GBP: The British Pound edged marginally higher but struggled to gain any true momentum. A quiet British data calendar and broader mixed market sentiment left the Pound without direction, while political infighting and uncertainty within the Labour government weighed on confidence. This was reflected in the rangebound trading by the market. Overall, with few domestic data releases ahead, the British Pound is expected to remain driven by broader market trends and shifts in global risk appetites.
EUR: The Euro traded narrowly as disappointing German business sentiment data highlighted sluggish momentum in the region’s largest economy. However, the losses were limited as broader market conditions provided some support to the Euro. With the economic data available thin, many in the market are turning towards the upcoming commentary from ECB officials to provide direction. Overall, the near-term movement is likely to depend on shifts in global risk appetite and any signals on inflation/growth prospects.
USD: The US Dollar remained under pressure, extending recent losses amid growing concern over trade policy uncertainty and renewed tariff threats. Political tensions and the risk of another government shutdown further weighed on sentiment. Investors are cautious as markets await clarity on future monetary leadership, with expectations around policy direction likely to play a key role in shaping near-term confidence and price action.
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