Spectrum Weekly Report

GBP: The British Pound weakened against the Euro and Dollar after a surprise 0.3% decline in UK retail sales for December. The sales figures missed expectations, signalling weaker consumer confidence and raising concerns about economic growth. In fact, a slowdown in consumer spending highlighted ongoing financial pressures within the UK. Ultimately, these developments contributed to a negative outlook for the Pound as market sentiment adjusted to the UK’s economic challenges in 2025.

EUR: The Euro strengthened as economic uncertainties weighed on global markets. On that note, the ECB emphasized a cautious approach to rate cuts, acknowledging weakening price pressures while signalling gradual adjustments. This stance supported the Euro, with market attention shifting to upcoming Eurozone economic data. Ultimately, the Euro’s positive momentum continued as investors adjusted their expectations for the ECB's policy direction.

USD: The U.S. Dollar weakened after soft inflation data and rising uncertainty over interest rate cuts, marking its first weekly loss in six weeks. While the US economy showed resilience with strong retail sales and job data, soft inflation raised speculation of a potential rate cut. Furthermore, the greenback also faced pressure from global economic developments, including the anticipation of Trump’s policy changes, contributing to its decline from over two-year highs.

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