The Daily Spectrum Report

GBP - The British Pound continues to struggle amid the UK’s worsening economic outlook. Business confidence has hit record lows, and expectations for investment, hiring, and revenue are falling. Markets fear further tax hikes in the autumn budget and potential interest rate cuts, which could weaken the Pound. Ultimately, persistent inflation and stagnant growth raise stagflation risks, further denting investor sentiment toward Sterling against both the Euro and Dollar.  

EUR - The Euro remains under pressure despite briefly firming after Germany’s CPI held steady. In fact, cooling inflation across the Eurozone has ramped up expectations for European Central Bank rate cuts, weakening the single currency. Although second-quarter growth slightly beat forecasts, broader economic concerns and U.S. trade tariffs weigh heavily. Ultimately, EUR/USD remains on track for a near 3% monthly loss, with risks tilted to the downside amid continued dollar strength.  

USD - The U.S. Dollar is on track for its best month in 2025, gaining over 3% in July, buoyed by stronger than expected GDP and labour market data. Moreover, despite global pressure and Trump’s calls for rate cuts, Fed Chair Powell maintained a hawkish stance, signalling no imminent easing. Ultimately, as investors anticipate July’s nonfarm payrolls, the Dollar remains firm, supported by resilient economic indicators and limited near-term rate cut expectations.

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