The Weekly Market Update
News & Insights
w/c 22nd June: Starmer Resigning?
GBP
The British Pound weakened last week as softer UK inflation and the Bank of England’s cautious stance dampened expectations for tighter monetary policy. While stronger retail sales offered brief support, attention increasingly shifted to politics after Andy Burnham’s decisive Makerfield by-election victory. The result fuelled speculation about the future direction of UK politics and leadership dynamics, adding uncertainty to the outlook. Investors will continue monitoring political developments alongside upcoming economic data.
EUR
The Euro enjoyed a constructive week, supported initially by broader market conditions before gaining further momentum from stronger-than-expected German economic data. A sharp improvement in German investor sentiment boosted confidence in the outlook for the region’s largest economy and underpinned demand for the single currency. Although weaker German producer price inflation trimmed some gains later in the week, the Euro remained resilient. Upcoming PMI, business climate and consumer confidence data will be closely watched.
USD
The US Dollar strengthened last week as investors reacted positively to signals from the Federal Reserve that interest rates could stay higher for longer if inflation remains a concern. Demand for the currency also increased as market confidence became more cautious following renewed uncertainty around US-Iran talks. Looking ahead, upcoming US inflation data will be closely watched, as stronger price pressures could provide further support for the Dollar.
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