Daily Spectrum Report

GBP - The British Pound weakened following disappointing UK retail sales and PMI data. In fact, June's sales rose just 0.9%, missing forecasts of 1.2%, while July's PMI slowed to 51.0. Markets reacted negatively, with GBP slipping against both the Euro and Dollar. Ultimately, rising unemployment, higher payroll taxes, and growing rate cut expectations from the Bank of England have added further pressure, casting doubt on Sterling's near-term strength.

EUR - The Euro strengthened after Eurozone PMI rose to an 11-month high of 51, beating expectations, in contrast to weaker UK data. This positive surprise supported EUR against GBP. Despite some short-term pressure from global trade optimism and a firming Pound, the Euro remains resilient. Moreover, the ECB held rates steady, signalling possible future cuts, while HSBC analysis ranked the Euro among top safe-haven assets alongside gold.

USD - The U.S. Dollar rose modestly on stronger jobless claims data and resilient services PMIs, but gains remain fragile amid ongoing political pressure on the Federal Reserve. In fact, President Trump's renewed criticism of Fed Chair Powell and concerns over Fed independence weigh on sentiment. Ultimately, while easing trade tensions offer short-term support, lingering uncertainty and expectations for future rate cuts limit the Dollar's rally and keep investor caution elevated.

For a live rate or to book a trade please contact us.

T: +44 203 440 7550 | E: info@spectrumfx.co.uk | W: www.spectrumfx.co.uk