Published: 27/02/2025 By ECAP
The British Pound weakened against the U.S. Dollar as risk aversion grew in the market. After briefly reaching a 10-week high, the Pound declined, impacted by negative market sentiment and geopolitical concerns, including President Trump's tariff threats. This shift in sentiment led to the Pound losing momentum against some currencies, and it remained under pressure amid growing uncertainty in the markets.
The Euro traded mostly flat against its peers following yesterday’s German Q4 2024 GDP reading, which showed a dip from 0.1% to -0.2%. Despite the negative data, it had little impact on the single currency. Looking ahead, the Euro’s movement could be influenced by Germany’s GfK consumer confidence index, with a slight improvement expected, potentially providing a boost if it beats market expectations.
The U.S. Dollar strengthened during yesterday’s trading session, recovering from nearly 11-week lows, amid soft economic data and easing concerns over President Trump’s tariff plans. The greenback had been pressured by weak consumer confidence data, raising concerns over slowing private consumption. However, news of tax cuts and fiscal measures provided some support for the Dollar, despite lingering uncertainties.
Data supplied by GC Partners