Published: 22/05/2026 By ECAP
WEAK DATA
The British Pound stayed under pressure after new figures showed UK business activity weakened unexpectedly, especially in the services sector. Concerns about rising costs, cautious consumers and a slowing economy weighed on sentiment. However, weakness elsewhere limited sharper losses. Investors are now watching upcoming retail sales data closely, as further signs of weaker consumer spending could increase worries about the UK’s economic outlook and add fresh pressure on the Pound.
The US Dollar traded cautiously as investors lacked fresh economic data to guide market sentiment. Ongoing uncertainty surrounding geopolitical tensions in the Middle East provided some support for the safe-haven currency, although mixed risk appetite limited stronger gains. Attention is now focused on upcoming US consumer confidence figures, while developments in global tensions could continue influencing demand for the Dollar and shape market sentiment in the near term.
The US Dollar strengthened after inflation data came in stronger than expected, reinforcing expectations that interest rates could stay higher for longer. Persistent price pressures linked to housing and energy kept markets cautious despite easing tensions in the Middle East. While improved trade discussions between the United States and China lifted sentiment slightly, uncertainty remains. Investors are now focused on upcoming economic data and central bank comments, with currency market volatility expected to stay elevated.
Data supplied by GC Partners