Published: 29/04/2025 By ECAP
Limited Movement
The British Pound strengthened amid upbeat risk sentiment and strong UK retail data. Despite a lack of new domestic data, markets focused on Bank of England Deputy Governor Ramsden’s speech, with dovish hints potentially weakening the Pound. Expectations of faster UK rate cuts, falling gas prices, and slower GDP growth forecasts are weighing on Sterling’s outlook, though analysts remain bullish on the Pound’s resilience against major currencies.
The Euro traded cautiously as investors awaited key economic data, including Germany’s consumer confidence and the Eurozone's sentiment index, both expected to weaken. Moreover, anticipation of tomorrow’s GDP and inflation figures limited EUR movement, with markets wary of their impact on ECB rate cut expectations. Despite stability against some peers, the Euro softened against the risk-sensitive Pound amid improved market sentiment and stronger UK retail data.
The U.S. Dollar remains under pressure amid collapsing imports due to steep tariffs, especially on Chinese goods, with ocean container bookings down over 60%. Analysts warn of an impending inventory shock, layoffs, and weakening economic data. As trade tensions persist and confidence in U.S. assets fades, the Dollar Index has dropped 8% in 2025, signalling the start of a broader Dollar downtrend driven by structural and geopolitical concerns.
Data supplied by GC Partners