Published: 03/07/2026 By ECAP
GROWING CONFIDENCE
The British Pound strengthened as confidence in the UK’s political and economic outlook improved. Investors were reassured by expectations of a smooth political transition and continued fiscal discipline, while lower mortgage rates and falling diesel prices boosted optimism. Attention now turns to business activity data and comments from the Bank of England governor, with markets looking for clues on the UK economy and future interest rate decisions.
The Euro remained under pressure as easing inflation weakened expectations for tighter monetary policy. Softer price growth reduced confidence in the single currency, extending recent losses. Investors are now focused on the latest business activity figures and comments from European Central Bank policymakers for further insight into the economic outlook and the likely direction of future interest rate decisions.
The US Dollar weakened after a disappointing US jobs report showed hiring slowed much more than expected in June, raising concerns that the labour market is losing momentum. Lower employment figures and downward revisions to previous months prompted investors to scale back expectations for further interest rate increases. Trading may remain subdued in the near term because US markets are closed for the Independence Day holiday weekend.
Data supplied by GC Partners