Wider Markets
GBP: The British Pound started the week on a firmer footing, helped by signs that UK manufacturing performed better than previously thought in May, with activity reaching its strongest level in four years. Support for the Pound was modest, however, as some analysts questioned whether the improvement can last. With little major UK economic news ahead, wider market mood is likely to play a bigger role this week.
EUR: The Euro came under pressure at the start of the week after weak German retail sales data highlighted ongoing strain on consumer spending. Sentiment was also dampened by a survey showing inflation expectations remained stable, reducing concerns about future price rises. Looking ahead, upcoming Eurozone inflation figures could be important, as stronger data may improve confidence in the Euro and influence expectations for future policy decisions.
USD: The US Dollar strengthened as investors sought safer assets amid rising tensions in the Middle East, increasing demand for the currency. Support also came from stronger than expected US manufacturing data, which highlighted the resilience of the economy and reinforced confidence in its outlook. Looking ahead, upcoming US jobs data could influence sentiment, while geopolitical developments are likely to remain a key driver of demand for the Dollar.
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