The Weekly Market Update
News & Insights
w/c 21st July: Cautious Sentiment
GBP
The British Pound has regained some stability following its recent decline. In fact, signs of a slowing selloff and stronger wage and inflation data have reduced expectations for aggressive interest rate cuts by the Bank of England. This shift has supported the Pound, though any gains may be limited. Ultimately, investors remain cautious, and further strength is likely to be met with resistance amid economic uncertainty.
EUR
The Euro faces renewed pressure amid escalating trade tensions between the European Union and the United States. With EU officials preparing a response to potential U.S. tariffs, uncertainty is growing over the economic impact of a trade dispute. Ultimately, market sentiment toward the Euro remains cautious, as investors await clarity on how upcoming negotiations and policy decisions may shape the region’s economic and currency outlook.
USD
The U.S. Dollar is regaining ground, driven by strong economic data and resilient consumer sentiment. Despite global uncertainty and trade tensions, investors are backing the Dollar as the U.S. economy shows signs of strength. In fact, retail sales and labour market data have helped limit downside pressure. Looking forward, while the economic calendar is quiet, upcoming PMIs may influence sentiment as markets weigh growth momentum and policy direction.
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