Published: 17/03/2025 By ECAP
The British Pound is facing pressure due to economic concerns, including an unexpected contraction in UK GDP and uncertainty around the Bank of England’s policy outlook. Upcoming data, such as wage growth and employment figures, will influence GBP's direction. If the BoE hints at potential rate cuts, it could weaken the Pound, while stable or stronger than expected data might help support its value.
The Euro saw positive movement early last week, driven by optimism around a potential ceasefire in Ukraine. However, its gains were limited by escalating trade tensions between the US and EU, particularly due to tariffs. Concerns over a potential EU-US trade war and Russia’s stance on Ukraine weighed on the Euro. Looking forward, data such as Germany’s ZEW sentiment could influence the Euro’s direction in the coming week.
The U.S. Dollar fluctuated last week, hitting multi-month lows amid recession fears and concerns over US tariffs. These worries fuelled expectations of more interest rate cuts from the Federal Reserve. However, the Dollar recovered later in the week after cooler than expected US inflation eased recession concerns. Moving forward, the Federal Reserve's guidance on interest rates will be crucial in determining the Dollar’s direction.
Data supplied by GC Partners