Published: 28/03/2025 By ECAP
The British Pound faces pressure due to uncertainty around upcoming tax hikes and spending cuts. Analysts predict that the government's limited fiscal flexibility may lead to further tax increases in Autumn, stoking concerns among businesses and consumers. The threat of economic stagnation and the impact of employment law changes also add to the risk, leaving the Pound vulnerable to negative sentiment in the months ahead.
The Euro shows resilience despite growing concerns about trade tariffs. It has been one of the best-performing G10 currencies in recent weeks, with its strength reflecting optimism in the market. However, some experts view this as unsustainable, arguing that the Euro’s current performance might be based on selective reading of trade developments, and that risks such as potential tariffs on EU exports are being underestimated.
The U.S. Dollar weakened against major rivals yesterday due to concerns over President Trump's tariff announcements, which revived fears of a U.S. economic downturn. Despite this, the Dollar benefited from a risk-averse market, limiting losses. The USD Index fluctuated below 104.50, while the PCE inflation is expected to remain steady at 2.5%. Ultimately, the currency’s movements are closely tied to upcoming U.S. economic data.
Data supplied by GC Partners