Published: 25/02/2025 By ECAP
The British Pound saw mixed movement yesterday, starting strong before facing choppy trade. Last week’s positive job data and inflation figures failed to boost sentiment, as concerns over weak growth and a potential rate cut by the Bank of England lingered. This week, the focus shifts to the Confederation of British Industry’s retail sales survey, with a potential decline in retail volumes pressuring the Pound. Ultimately, Sterling's movement will likely remain influenced by broader market sentiment and economic outlook shifts.
The Euro strengthened following yesterday’s German election results. In fact, the bloc’s single currency found support as populist parties did not surpass polls, raising optimism for a grand coalition. Ultimately, analysts suggest this could positively impact Germany’s economy. However, challenges remain, with the incoming government facing complex issues, including Ukraine relations and trade tariffs.
The U.S. Dollar remained subdued during yesterday’s trading session following recent retreats, influenced by weak U.S. economic data. In fact, a February survey showed U.S. business activity nearly stalled, and consumer sentiment dropped to a 15-month low. Looking forward, investors are awaiting more economic data this week, including the personal consumption expenditures price index, which is closely monitored by the Federal Reserve for inflation insights
Data supplied by GC Partners