Daily Spectrum Report

GBP - The British Pound gained momentum as easing trade tensions and market repositioning supported its recovery. Analysts highlighted that the Pound had become oversold, creating room for a rebound. In fact, with no major UK data releases, Sterling traded on broader sentiment, benefiting from its appeal in low-volatility conditions. Ultimately, expectations of stable interest rates and favourable carry dynamics further underpinned the Pound's short-term strength against other major currencies.  

EUR - The Euro weakened following the EU-U.S. trade deal, as investors viewed the agreement as underwhelming and possibly unfavourable for Europe. Sentiment declined further amid concerns from key economies like Germany and France. In fact, as trade uncertainty faded, the Euro lost prior support gained from tariff fears. Ultimately, although the ECB may cut rates less aggressively than others, near-term pressure on the Euro could persist due to market repositioning.  

USD - The U.S. Dollar strengthened as markets responded to a new EU-U.S. trade deal and anticipated the Fed’s rate decision. Though job openings declined, cautious sentiment supported the Dollar. Moreover, investors now expect the Fed to hold rates steady, despite political pressure. Ultimately, with inflation stable and trade tensions easing, the Dollar remains resilient, though further gains may be capped if economic data shows signs of weakening later in the year.

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