Published: 16/07/2026 By ECAP
FISCAL RESPONSIBILITY
The British Pound strengthened after reports suggested Andy Burnham will appoint Shabana Mahmood as Chancellor, reassuring investors who see her as more fiscally cautious. The news boosted confidence in the UK’s economic outlook. However, gains may be limited after Burnham signalled taxes could rise, raising concerns that uncertainty ahead of the Autumn Budget could weigh on the economy and the Pound.
The Euro held steady on Wednesday despite weaker than expected industrial production data from the Eurozone. A stronger revision to the previous month’s figures helped ease concerns about the slowdown, limiting pressure on the single currency. Looking ahead, investors will monitor wider market sentiment, geopolitical developments and upcoming economic data for further clues on the Euro’s direction.
The US Dollar weakened after lower than expected inflation raised hopes that the Federal Reserve may be less likely to raise interest rates in the near term. Investors also looked ahead to more US economic data, with slower retail sales and higher jobless claims expected to keep pressure on the currency if the figures confirm signs of a cooling economy.
Data supplied by GC Partners