17/03/2026
The US Dollar’s two-day rally is consolidating, driven by upbeat US macroeconomic data, including revised Q2 GDP growth of 3.8% and lower Initial Jobless Claims. This strong data may lead the Federal Reserve (Fed) to be cautious about future interest rate cuts.
Major currency pairs are struggling to find a clear direction as markets await new catalysts, including German business sentiment and US housing data.
The Euro has softened against the US Dollar following weaker-than-expected German business climate data, while the Pound Sterling has also lost ground due to disappointing UK PMI figures and fiscal concerns.
Sterling is facing headwinds against the Euro due to UK fiscal concerns but has stabilised against the US Dollar.
Sterling weakens despite upbeat retail data, as the BoE slows its gilt run-off and maintains a cautious tone. The Euro faces pressure from French political unrest, while the Dollar gains on strong US data and Powell’s measured post-Fed remarks.
Sterling trades cautiously ahead of the BoE decision, while the Euro steadies on ECB commentary. The US Dollar rebounds modestly after Powell’s measured post-Fed remarks, though further easing is still expected.