Published: 20/07/2026 By ECAP
REDUCED PRESSURE
The British Pound had a mixed week, lacking direction early on before gaining support as investors welcomed expectations of a more fiscally cautious UK Chancellor. However, those gains faded as traders took profits despite signs the economy returned to modest growth. This week, attention turns to UK poltiics, inflation and retail sales data, which could influence confidence in the Pound and shape its near-term outlook.
The Euro found support early in the week as investors expected further action from the European Central Bank and benefited from broader market sentiment. It later came under pressure after weaker industrial production data but recovered as momentum was lost elsewhere. This week, investors will focus on German economic confidence, the European Central Bank’s policy decision and business activity surveys.
The US Dollar remained steady despite geopolitical tensions, with investors focusing on expectations that the Federal Reserve could keep interest rates higher for longer. Some analysts believe this could support the currency in the near term, although others expect only modest gains over time. Markets will continue watching Federal Reserve policy and wider economic developments for clues on the Dollar’s direction.
Data supplied by GC Partners