Published: 28/07/2025 By ECAP
At a Glance
The British Pound is falling to multi-month lows amid weak UK data and expected Bank of England rate cuts.
The Euro is holding firm near highs as the ECB signals an end to rate cuts, and the economy shows resilience.
The U.S. Dollar remains under pressure despite recent gains, with markets expecting steady Fed rates and a cautious inflation outlook.
Downward Path
The British Pound is under sustained pressure, falling to multi-month lows as weak economic data and rising expectations of Bank of England interest rate cuts weigh heavily. In fact, retail sales and employment figures have disappointed, while investor confidence is eroding amid concerns over the UK’s fiscal outlook. Ultimately, with the economy losing momentum and the policy outlook turning more dovish, the Pound is likely to remain on a downward path.
The Euro is holding its ground as the European Central Bank signals the end of its interest rate cutting cycle. Moreover, economic indicators across the Eurozone, including stable PMI readings and modest gains in German business sentiment, point to a resilient, if slow-growing, economy. Ultimately, with policy stability and consistent data, the Euro remains firm and continues to trade near recent multi-month highs.
The U.S. Dollar firmed up on Friday but remains under pressure amid expectations the Federal Reserve will hold rates steady at its next meeting. In fact, support came from optimism around trade talks with the EU and China, as well as reassurance that Fed Chair Jerome Powell will complete his term. However, broader market sentiment remains cautious, with persistent concerns about U.S. inflation and institutional independence.
Data supplied by GC Partners