The Weekly Market Update
News & Insights
w/c 2nd June: Mixed Performance
GBP
The British Pound has softened against the Euro after losing the upward momentum it carried through April and May. In fact, with no major UK economic data expected this week, the Pound lacks clear direction and is vulnerable to shifts in broader market sentiment. Moreover, recent optimism driven by improved growth forecasts and trade agreements has faded, leaving Sterling exposed to external pressures and profit-taking by investors.
EUR
The Euro experienced a mixed performance last week, influenced by trade tensions, weak German economic data, and easing inflation across the Eurozone. In fact, a pause in U.S. tariff plans initially supported the currency, but rising German unemployment and falling retail sales weighed on sentiment. With inflation cooling, markets anticipate another interest rate cut, while expectations for further easing limit the Euro’s upside potential in the near term.
USD
The U.S. Dollar traded slightly lower as uncertainty over tariffs and mixed economic signals weighed on sentiment. In fact, comments from a Federal Reserve official suggesting openness to rate cuts added pressure. Moreover, a temporary return of Trump-era tariffs and weak inflation data further clouded the outlook. Ultimately, investors are closely watching key economic indicators, including inflation and spending figures, for signs of the Fed’s next move.
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