Published: 14/05/2026 By ECAP
LEADERSHIP CHALLENGE
The British Pound saw modest support on Wednesday but remained under pressure as political uncertainty in Westminster unsettled investors. Concerns grew after several ministerial resignations and continued speculation over Prime Minister Keir Starmer’s leadership. Market confidence was also shaken by volatility in UK bond markets. Attention is now turning to UK growth figures which could influence sentiment toward the Pound depending on the strength of the outlook.
The Euro weakened on Wednesday as disappointing economic data reduced confidence in the Eurozone’s growth outlook. German wholesale prices and wider industrial production figures both fell short of expectations, adding pressure on the single currency. Investors were also cautious ahead of comments from Christine Lagarde, with markets watching for any signals on future interest rate policy that could affect sentiment toward the Euro.
The US Dollar strengthened on Wednesday as investors sought safer assets amid rising global uncertainty. Ongoing tensions in the Middle East and concerns ahead of talks between Donald Trump and Xi Jinping supported demand for the currency. Stronger than expected US inflation data also boosted confidence, reinforcing expectations that the Federal Reserve may keep borrowing costs higher for longer.
Data supplied by GC Partners