Published: 10/02/2026 By ECAP
POLITICAL NERVES
The British Pound steadied after early losses as Prime Minister Keir Starmer moved to contain a leadership challenge. Markets were briefly unsettled by calls for his resignation, but support from senior ministers helped calm nerves. While the immediate pressure has eased, political uncertainty remains in the background, meaning sterling may stay sensitive to headlines rather than economic data in the near term.
The Euro eased slightly after recent gains, with traders taking a cautious approach ahead of key US employment data due later this week. While the broader trend remains constructive, momentum has cooled for now. With no major eurozone releases today, the single currency is likely to take its lead from global risk sentiment and developments in the US dollar.
The US Dollar softened as investors positioned cautiously ahead of a busy US data week, including jobs and inflation figures. Markets are watching closely for signs the US labour market is slowing, which could pressure the Dollar further. Until those numbers are released, trading is likely to remain measured, with the dollar reacting more to sentiment than fresh headlines.Data supplied by GC Partners