Improving Sentiment
GBP
The British Pound edged higher at the start of Tuesday’s session, helped by slightly improved market sentiment. However, the move lacked momentum as investors had little UK economic news to focus on. Attention now turns to the latest CBI retail survey, with a modest improvement in retail activity expected to provide some support for the Pound. Overall, the Pound’s near-term direction may depend on incoming UK data.
EUR
The Euro gained ground as stronger German economic data boosted confidence in the region’s largest economy. Germany’s business activity improved for a fourth consecutive month, while economic growth proved more resilient than expected. Looking ahead, attention will turn to comments from European Central Bank policymaker Piero Cipollone. As a more cautious voice on interest rates, his remarks could weigh on the euro if they suggest a softer approach.
USD
The US Dollar found some support from renewed concerns over trade tensions, as new US sanctions on Iran raised fears of friction with China. However, gains were limited by expectations of softer inflation and slower economic growth. Attention now turns to the latest inflation figures and updated economic growth data, which could reinforce expectations of a more cautious approach from the Federal Reserve.
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