Daily Spectrum Report

GBP - The British Pound remained under pressure amid growing concerns over UK public finances, weak economic data, and dovish signals from the Bank of England. In fact, Governor Andrew Bailey hinted at accelerating rate cuts if the labour market worsens. Ultimately, while some analysts see the Pound as undervalued, sentiment remains fragile ahead of key inflation and employment data this week.

EUR - The Euro gained ground against the British Pound as markets priced in aggressive UK rate cuts, while the ECB is expected to cut only once more. This divergence has supported EUR/GBP, which rose 1.75% in June. However, sentiment toward the Euro remains cautious due to trade tensions with the U.S., with investors wary following Trump's tariff threats despite progress in EU-US negotiations. Ultimately, key data ahead could influence momentum.

USD - The U.S. Dollar faces a weakening long-term outlook as analysts anticipate a broader decline driven by structural challenges and potential Federal Reserve rate cuts. Although upcoming inflation data may provide short-term support, overall sentiment remains cautious. Ultimately, trade tensions and growing policy divergence with other major economies, particularly the Eurozone, are expected to weigh on the Dollar, with forecasts suggesting further downside in the months ahead.

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