Published: 24/06/2026 By ECAP
SMOOTH TRANSITION
The British Pound strengthened as investors responded positively to a combination of supportive market and political factors. Higher UK bond yields continued to attract demand for the Pound, while improving global risk sentiment provided additional backing. Political uncertainty also eased after a smooth leadership transition appeared more likely, helping boost confidence. Together, these factors supported the Pound’s advance and encouraged expectations from some that its recent gains could continue.
The Euro struggled to gain momentum as recent data highlighted continued weakness across the Eurozone economy. Manufacturing activity unexpectedly softened, while the services sector, despite a slight improvement, remained subdued. The figures suggested that overall business activity is still under pressure, reflecting ongoing economic challenges. Investors are now looking for signs of improving business confidence, which could help support sentiment if conditions begin to stabilise.
The US Dollar remained supported as investors reacted to signals that the Federal Reserve may keep interest rates higher for longer. Although rates were left unchanged, policymakers struck a firmer tone than expected, leading markets to anticipate tighter policy ahead. The currency also benefited from cautious investor sentiment, with demand for traditionally safer assets increasing amid weakness in financial markets and ongoing economic uncertainty
Data supplied by GC Partners