The Weekly Market Update

w/c 9th June: Broader Trends

GBP

The British Pound is showing signs of modest strength against its peers, supported by positive global market sentiment and steady UK economic performance. However, investor focus is on the upcoming UK spending review, which could test confidence in fiscal discipline. If labour market data shows weakness or economic growth disappoints, it may weigh on the Pound. Nevertheless, the broader trend suggests cautious optimism for Sterling this week.

EUR

The Euro showed mixed performance last week, initially pressured by falling inflation, which sparked speculation of more European Central Bank rate cuts. However, it regained ground after improved economic data and President Lagarde’s cautious stance on further easing. Moreover, a stronger Eurozone growth revision also boosted sentiment. Looking to this week, broader market trends and EU-US trade talks are likely to guide Euro movement in the absence of major Eurozone data releases.

USD

The U.S. Dollar opened the week slightly weaker as markets await US-China trade talks as well as key inflation data due midweek. In fact, optimism over easing trade tensions has weighed on the Dollar, though caution remains high. Moreover, investors are closely watching Wednesday’s inflation report, which could shape expectations for Federal Reserve policy. Until then, the Dollar is likely to trade cautiously amid mixed global economic signals and geopolitical uncertainty.

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