The Weekly Market Update
News & Insights
w/c 7th July: Outperforming Expectations
GBP
The British Pound remains under pressure due to weak investor sentiment, political uncertainty, and concerns over the UK’s rising debt and potential tax hikes. In fact, GBP/USD and GBP/EUR are both trending lower, with technical indicators showing continued downside momentum. Ultimately, a lack of supportive economic data, speculation over Bank of England rate cuts, and global trade tensions further undermine the Pound’s outlook in the near term.
EUR
The Euro is set for modest weekly gains, supported by easing inflation aligning with ECB targets and progress in EU-US trade talks. Although German industrial orders fell sharply and Eurozone unemployment ticked up, these concerns were tempered by expectations that the ECB will pause rate cuts. However, cautious comments from ECB officials on the Euro’s strength also suggest heightened sensitivity to rapid currency movements going forward.
USD
The U.S. Dollar strengthened on the back of Friday’s strong economic data, including a better than expected June jobs report and a drop in unemployment. In fact, these figures have lowered expectations for a near-term Federal Reserve rate cut. Ultimately, despite ongoing trade tensions and upcoming tariffs, the Dollar remains resilient, supported by a stable labour market and signs that the U.S. economy continues to outperform expectations.
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