Published: 19/05/2026 By ECAP
UNEXPECTED DATA
The British Pound recovered on Monday as concerns about political instability in the UK eased after Prime Minister Keir Starmer avoided an immediate leadership challenge. Improved confidence helped calm financial markets and supported the Pound after last week’s losses. The currency also benefited from an upgraded UK growth forecast from the International Monetary Fund however unemployment is running higher than predicted. Investors are now watching comments from Bank of England officials for further direction.
The Euro found limited support on Monday, although the absence of fresh Eurozone economic data prevented the single currency from developing a stronger directional trend. Trading conditions remained subdued, with investors lacking clear catalysts to drive movement. Looking ahead, the lack of major Eurozone economic releases on Tuesday may leave the Euro sensitive to wider market sentiment and external developments, with investor confidence likely to play a key role in shaping near-term performance.
The US Dollar weakened on Monday after a strong run last week, as investors took profits and demand for safer assets eased slightly. Although tensions in the Middle East continued to create uncertainty, hopes of a possible US-Iran agreement reduced support for the Dollar. Attention is now turning to upcoming US jobs data and wider market sentiment, which could influence how the Dollar performs in the days ahead.
Data supplied by GC Partners