Published: 29/08/2025 By ECAP
MARKET UNCERTAINTY
The British Pound remained stable against the U.S. Dollar despite a lack of fresh UK economic data. Market sentiment and improved risk appetite offered some support to Sterling, though its momentum was limited. Investors are watching U.S. inflation data closely, which could influence Federal Reserve decisions and, in turn, impact the Pound. Ultimately, uncertainty around future UK tax policies and central bank moves continues to weigh on the currency's outlook.
The Euro remained under pressure amid mixed German data and broader market uncertainty. In fact, weak consumer confidence and slowing economic sentiment weighed on the currency, while inflation data offered limited support. Moreover, political instability in France added to investor concerns, with rising French bond yields fueling fears of a deeper fiscal crisis. However, expectations of stable ECB policy and a weakening U.S. dollar helped limit further Euro losses.
The U.S. Dollar traded mixed as investors weighed political uncertainty and interest rate expectations. Markets focused on the Fed’s upcoming rate decision, with odds favouring a September cut amid soft inflation signals. However, President Trump’s attempt to dismiss Fed Governor Lisa Cook raised concerns about central bank independence. Despite occasional gains, the Dollar remained under pressure, particularly due to dovish sentiment and improving global risk appetite.
Data supplied by GC Partners