Published: 01/07/2026 By ECAP
SOLID DATA
The British Pound strengthened on Tuesday after revised figures confirmed the UK economy made solid progress in the first three months of 2026, supporting confidence in the outlook. However, gains were limited by weaker earlier growth revisions and an economic slowdown in April. Looking ahead, investors will watch comments from Bank of England Governor Andrew Bailey, which could influence expectations for the Pound’s near-term direction.
The Euro weakened on Tuesday despite stronger than expected economic data from Germany, as improving market confidence reduced demand for the currency. Investors largely looked past the positive figures, instead waiting for fresh inflation data and comments from European Central Bank President Christine Lagarde. The Euro’s near-term direction may depend on whether inflation slows as expected and the ECB’s outlook for future policy.
The US Dollar lost ground on Tuesday as weaker than expected consumer confidence weighed on sentiment, despite signs of strength in the labour market. Earlier support faded as market confidence improved, reducing demand for the currency. Looking ahead, investors will focus on comments from Federal Reserve Chair Kevin Warsh and the latest US manufacturing data for fresh clues on the economic outlook.
Data supplied by GC Partners