Published: 17/07/2026 By ECAP
REDUCED PRESSURE
The British Pound remained steady after stronger than expected UK economic growth boosted confidence in the outlook. Investors saw the data as reducing pressure for the Bank of England to cut interest rates soon. The Pound also drew support from expectations that the new government’s economic approach could remain relatively cautious, encouraging optimism among investors despite ongoing global uncertainty and higher energy costs in recent weeks, overall sentiment improved.
The Euro was subdued on Tuesday as weaker than expected German wholesale inflation data weighed on sentiment. However, expectations that policymakers may continue efforts to keep inflation under control helped limit losses. Looking ahead, investors will watch the latest Eurozone industrial production figures for fresh clues on the region’s economic health, while broader market sentiment is also likely to influence the single currency.
The US Dollar strengthened as escalating conflict in the Middle East increased demand for safer assets. Investors sought the currency amid rising geopolitical uncertainty, while attention also turned to upcoming consumer confidence data, which is expected to show improving household sentiment. If tensions remain elevated and confidence improves, the Dollar could continue to find support from cautious market sentiment.
Data supplied by GC Partners