Published: 27/07/2026 By ECAP
HONEYMOON OVER
The British Pound faced a difficult week as investors focused on concerns about the UK government’s spending and tax plans, despite several stronger than expected economic updates. Better retail sales and business activity failed to improve confidence, while inflation figures had little effect. Attention now turns to the Bank of England’s upcoming policy decision, with any signals about future interest rates likely to influence confidence in the Pound.
The Euro strengthened over the week as improving economic data boosted confidence. Better business activity and stronger economic sentiment helped support the currency, while concerns about inflation and the wider economic outlook had little immediate impact. Looking ahead, upcoming growth and inflation figures will be closely watched, as stronger results could provide further support for the Euro in the near term.
The US Dollar strengthened during the week, supported by higher energy prices and expectations that the Federal Reserve could keep a cautious approach to interest rates. The currency also benefited from demand for safer assets as market uncertainty persisted. Looking ahead, investors will focus on signals from the Federal Reserve, with any changes in its outlook likely to influence the US Dollar’s direction.
Data supplied by GC Partners