Published: 15/01/2026 By ECAP
DATA DETERMINES
The British Pound has found stronger footing this morning after better-than-expected UK GDP data released this morning showing growth of 0.3%. Although there remain geopolitical and domestic political concerns, improved economic momentum has led attention to shift towards the data releases next week and the corresponding impact on the Bank of England. Remarks from a Bank of England policymaker has led some in the market to believe that inflation may return to target sooner and that the rate cutting cycle could be nearing its end.
The Euro traded cautiously as it lacked clear direction as investors await the results of the talks on Greenland’s future. There are growing concerns that rising US pressure could strain the transatlantic relationship which has resulted in many in the market acting defensively and ultimately limit risk. As a result of this widespread uncertainty, the single currency remained subdued. Market actors await any signals or indications from discussions..
The U.S. Dollar has traded with a subdued tone as market confidence remained fragile amid uncertainty around the Federal Reserve. There are concerns over central bank independence, although these have eased slightly after political pushback. Alongside this, remains geopolitical uncertainty which has the possibility of creating & ending safe haven demand. Markets await a swathe of economic data to get a clearer signal on growth, labour conditions and near-term policy expectations.
Data supplied by GC Partners