Published: 29/06/2026 By ECAP
CALMER MARKETS
The British Pound stayed resilient last week despite Prime Minister Keir Starmer’s resignation, as investors had largely expected the move and were reassured by plans for a smooth leadership transition. Hopes of a quick appointment of a new Prime Minister also supported confidence. This week, attention will turn to UK economic data and political developments, which could influence how the Pound performs in the near term.
The Euro struggled last week after comments from the European Central Bank suggested there was no urgent need for stronger action on inflation. Weak business activity across the Eurozone and mixed economic data also weighed on sentiment. This week, investors will focus on the latest inflation figures, which could shape expectations for future European Central Bank decisions and influence the Euro’s direction.
The US Dollar remains supported by expectations that interest rates could stay higher for longer, helping maintain investor confidence. Analysts say the currency may strengthen further in the near term if borrowing costs remain elevated and market uncertainty persists. However, some expect the dollar to weaken later this year if interest rates are cut, continuing the broader trend seen since its 2022 peak.
Data supplied by GC Partners