01/10/2025
Sterling strengthened notably in May, buoyed by a series of stronger-than-expected economic data releases, including GDP, inflation, and retail sales
Markets remain in a cautious stance ahead of key US inflation data, which will influence Federal Reserve rate-cut expectations and broader market sentiment.
US Dollar strengthened after Trump’s tariffs were blocked, improving risk sentiment. The Euro remains pressured as weak German employment figures reinforce ECB rate-cut expectations, while Sterling holds firm following stronger inflation and retail sales data.
Sterling is supported by expectations that the Bank of England will delay rate cuts, while the Euro struggles amid ongoing US-EU trade tensions and German economic concerns.
Currency markets remain influenced by US trade policy developments and fiscal concerns, with the US Dollar struggling against its peers. The Pound remains supported by strong UK economic data, while the Euro benefits from optimism surrounding US-EU trade talks.
Sterling remains buoyant following stronger UK Retail Sales data, which reinforces expectations that the Bank of England may delay rate cuts.