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GBP: The British Pound was subdued after UK inflation figures sent mixed signals, giving investors little reason to change expectations for future interest rates. Markets also remained cautious over questions about how Prime Minister Andy Burnham plans to pay for new cost-of-living measures. Attention is now turning to upcoming UK business surveys, while political uncertainty could continue to weigh on the Pound in the near term.
EUR: The Euro traded cautiously as investors avoided making major moves ahead of the European Central Bank’s latest policy decision. With little fresh Eurozone economic data, markets focused on what the bank might signal about future interest rates. If policymakers suggest borrowing costs could stay higher for longer, the single currency may find support, while a cautious outlook could limit gains.
USD: The US Dollar strengthened as investors sought safer assets amid escalating tensions in the Middle East and rising concerns over global energy supplies. Higher oil prices also fuelled worries about inflation, adding to demand for the currency. With market uncertainty persisting and risk appetite remaining fragile, the Dollar is expected to stay well supported in the near term.
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