Reduced Pressure
GBP: The British Pound remained steady after stronger than expected UK economic growth boosted confidence in the outlook. Investors saw the data as reducing pressure for the Bank of England to cut interest rates soon. The Pound also drew support from expectations that the new government’s economic approach could remain relatively cautious, encouraging optimism among investors despite ongoing global uncertainty and higher energy costs in recent weeks, overall sentiment improved.
EUR: The Euro was largely subdued as a quiet economic calendar gave investors little new information to act on. Attention remained on upcoming inflation data, which could strengthen expectations that price pressures are easing. If confirmed, this may reduce the need for tighter European Central Bank policy, limiting support for the single currency and leaving it vulnerable to broader market sentiment.
USD: The US Dollar strengthened as escalating conflict in the Middle East increased demand for safer assets. Investors sought the currency amid rising geopolitical uncertainty, while attention also turned to upcoming consumer confidence data, which is expected to show improving household sentiment. If tensions remain elevated and confidence improves, the Dollar could continue to find support from cautious market sentiment.
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