Deal Drift
GBP: The British Pound is slightly softer despite stronger UK growth data, as markets remain focused on the outlook ahead. Political pressure around Starmer is starting to build again, adding uncertainty ahead of elections. While improved sentiment from ceasefire hopes is helping limit losses, the Pound still looks vulnerable, especially if domestic concerns continue to build into next week.
EUR: The Euro is steady and holding recent gains as optimism around a potential end to the conflict supports sentiment. A softer Dollar has helped the move, with the pair now back near pre-war levels. However, gains remain measured, as energy prices are still elevated and pose a risk to the Eurozone outlook. For now, the Euro is stable but sensitive to any shift in headlines.
USD: The US Dollar is slightly weaker as ceasefire hopes and renewed talks reduce demand for safe-haven assets. Oil prices have eased, helping improve overall sentiment. That said, the move lower has been gradual, as uncertainty around negotiations remains. For now, the Dollar is on the back foot into the weekend, but still reactive to any shift in sentiment.
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