Published: 05/03/2025 By ECAP
The British Pound fluctuated against its peers as the lack of UK data releases and a cautious market sentiment weighed on the Pound. In fact, investors seem to be holding back ahead of upcoming economic reports. On that note, anticipated UK and Eurozone data, including final services PMIs and a speech from the Bank of England's Governor, could influence future GBP movements.
The Euro rallied across the board yesterday, fuelled by expectations that increased European defence spending will boost economic growth. The EU’s plan to extend €150 billion in loans for defence is seen as crucial for the euro's recovery, which has gained nearly 4% from a two-year low against the Dollar. However, some analysts remain cautious about the long-term impact on growth.
The U.S. Dollar struggled during yesterday’s trading session, weakening against several currencies despite recovering from last week’s losses. The drop was led by geopolitical concerns and worries about the US economy. Looking forward, investors remain cautious ahead of upcoming US data releases, including the ISM services PMI and factory orders, which could provide support for the Dollar later in the week.
Data supplied by GC Partners