Published: 04/04/2025 By ECAP
The British Pound declined throughout yesterday’s European session after the UK’s latest services PMI came in below expectations. The final reading for March revealed slower growth in the crucial services sector than previously estimated, with economists warning that the data suggests stagnation in the UK economy during the first quarter. With no significant UK data set for release today, the Pound is likely to stay sensitive to broader market sentiment shifts.
The Euro strengthened against most currencies yesterday, supported by its inverse correlation with a declining U.S. Dollar. Moreover, sentiment for the Euro was also boosted by an upward revision of the Eurozone’s final March PMIs. However, this morning's German factory orders data showed flat growth in February, underperforming expectations and possibly limiting further gains for the bloc’s single currency.
The U.S. Dollar fell to its weakest levels in months yesterday, as markets reacted to growing concerns that Trump’s tariff plan could harm the US economy. The sharp drop led Deutsche Bank to warn of a potential 'crisis of confidence' in the Dollar, with investors uncertain about the direction of US economic policy. Looking ahead, the greenback may remain under pressure if today’s US non-farm payrolls report signals a softening jobs market, fuelling recession fears.
Data supplied by GC Partners