08/01/2026
Markets turned cautious ahead of a heavy US data slate, with the Dollar steady after strong ISM Services data. Sterling softened against the Dollar but held firm versus the Euro.
The US Dollar steadies ahead of a heavy US data slate, while risk appetite improves. Sterling consolidates near recent highs, supported by BoE caution.
The US Dollar softened as risk appetite improved and weak ISM Manufacturing data weighed on the currency. Sterling advanced strongly, with GBP/EUR breaking to 1.1550 and GBP/USD holding near multi‑month highs.
The US Dollar extended its recovery as geopolitical tensions surged following the US strike on Venezuela. Sterling held firm against the Euro and only modestly softened against the Dollar, supported by the BoE’s gradual easing stance.
Markets quietened ahead of Christmas Eve, with the Dollar under pressure despite stronger US GDP. Sterling held firm above 1.3500 on BoE’s gradual easing stance, while the Euro gained modestly on Fed–ECB divergence.
The US Dollar weakened sharply ahead of today’s Q3 GDP release, boosting GBP, EUR, AUD and CAD. Sterling outperformed on expectations of a gradual BoE easing cycle, while the Euro gained on Fed–ECB divergence.