Published: 18/02/2025 By ECAP
The British Pound strengthened after positive UK employment data. In fact, the Pound rose against both the Euro and the Dollar following the unexpected stability in the UK unemployment rate. Strong wage growth also helped, easing pressure on the Bank of England to lower interest rates in the near future. Despite this, concerns about inflation continue to shape market expectations for potential rate cuts down the line.
The Euro faced challenges despite positive trade data from the Eurozone, which showed a smaller than expected decline in the trade surplus. In fact, the currency struggled to attract investor attention, weighed down by the upbeat market mood and its role as a safe-haven currency. As a result, the Euro remained subdued against most peers, with limited movement despite some encouraging economic signals from the region.
The U.S. Dollar strengthened as concerns over new tariffs and global trade tensions re-emerged. The Dollar Index rose by 0.2%, recovering from last week’s decline. Investors flocked to safe-haven assets, driven by expectations that U.S. interest rates would remain elevated following recent inflation data. Ultimately, the outlook for heightened trade tensions further supported the Dollar’s rebound.
Data supplied by GC Partners