Spectrum Daily Report

GBP: The British Pound has been under pressure, dropping to its lowest levels in months. Despite global market optimism, concerns over weak growth and political uncertainty weigh on the Pound. However, the Bank of England's cautious stance on rate cuts due to rising inflation could provide support. Ultimately, investors await key economic data that may influence future rate decisions and the Pound’s direction in the coming months.

EUR: The Euro seems poised to move within its recent range against the Pound, with inflation data from the Eurozone being a key event this week. In fact, rising inflation could influence the European Central Bank’s decision on interest rates. Ultimately, the Euro has recently gained strength due to a weaker U.S. Dollar, but geopolitical risks and economic conditions in the Eurozone may affect its performance in the near term.

USD: The U.S. Dollar retreated yesterday, losing some of its recent gains. The decline followed the nomination of Scott Bessent as Treasury Secretary, which reassured bond markets but indicated that he favors a strong dollar. Ultimately, analysts expect any pullback to be short-lived. Looking forward, market attention is on the upcoming PCE Price Index, which will influence inflation expectations and the Federal Reserve's future rate decisions.

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