Steady Markets
GBP
The British Pound was steady as a quiet UK economic calendar gave investors little new to react to. Improved market sentiment and higher energy prices offered some support, while expectations that interest rates could stay higher for longer also helped. Attention now turns to the latest services business activity data, which could provide the next clue on the strength of the UK economy and influence the Pound’s near-term direction.
EUR
The Euro traded in a narrow range as a lack of major Eurozone data left investors with little fresh direction. Concerns over the economic impact of recent heatwaves, including risks to agriculture, energy production and transport, kept sentiment cautious. Investors are now watching the latest services business activity figures, which could offer a clearer picture of the Eurozone economy and shape the Euro’s near-term outlook.
USD
The US Dollar weakened initially as hopes of easing tensions in the Middle East reduced demand for safe-haven assets. It later recovered after renewed uncertainty boosted investor caution, while stronger US manufacturing data also improved confidence in the currency. Looking ahead, upcoming US jobs and factory data could influence the Dollar’s direction, with softer labour figures potentially weighing on demand if economic momentum shows signs of slowing.
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