Published: 10/02/2025 By ECAP
The British Pound has posted short-term gains, with expectations for a mild upward trend against a basket of currencies. However, upcoming economic reports and speeches from BoE officials could influence its movement. Concerns about the UK's economic growth and rising inflation are creating challenges for the Pound. While there's potential for further gains, risks remain as the economy faces stagnation and pressures from inflation, making the outlook uncertain.
The Euro faces pressure as concerns over economic growth and inflation persist. Despite some recovery in recent weeks, the Euro struggles against the Pound, with risks of sideways movement in the exchange rate. While there is some potential for gains, the Euro's upside is limited due to ongoing economic challenges. Ultimately, market sentiment remains cautious, keeping the Euro's outlook uncertain in the short term.
The U.S. Dollar strengthened as markets responded to President Trump’s announcement of tariffs on steel and aluminium imports, recovering losses from the previous week. The tariffs re-raised concerns about a global trade war, which bolstered the Dollar. Additionally, analysts warned that tariff-induced inflation could keep U.S. interest rates high for a longer period.
Data supplied by GC Partners