Published: 31/03/2025 By ECAP
The British Pound received support from stronger than expected UK economic data, with retail sales rising by 1.0% in February. Moreover, GDP growth for 2024 was revised up to 1.1%. However, the trade deficit widened by 70%, from £6bn to £10.2bn in the fourth quarter. Ultimately, global trade tensions, particularly around tariffs, are expected to impact the Pound’s movement in the coming weeks, keeping markets cautious.
The Euro faces potential volatility this week due to concerns over US tariffs on cars, especially their impact on the German economy. Moreover, the Eurozone’s consumer price index is expected, with inflation likely cooling slightly in March. This could increase the likelihood of a European Central Bank rate cut in April, putting further pressure on the Euro. Ultimately, market focus will be on how these factors influence the Euro’s performance.
The U.S. Dollar is under pressure amid concerns over trade tariffs and recession fears. With President Trump set to announce new tariffs, market volatility is expected. Key economic data, including the ISM manufacturing and services PMIs and Friday's labour market report, could influence the Dollar's movement. If the data shows slowing activity or rising unemployment, the Dollar may weaken further.
Data supplied by GC Partners