Spectrum Weekly Report

GBP: The British Pound recovered substantial ground against the U.S. Dollar after the London Summit, supported by a rally in European currencies. Looking forward, trade developments, US tariffs, and economic data will be key this week. Ultimately, ING expects the Pound to stay supported in the short term but anticipates pressure from the upcoming UK budget statement.

EUR: The Euro strengthened against the U.S. Dollar yesterday, driven by optimism over potential peace talks between Ukraine and Russia. In fact, European leaders are taking the lead in pushing for a peace deal, which supported the euro’s recovery. However, inflation data and upcoming European Central Bank decisions could impact the euro, with expectations of a rate cut to stimulate the eurozone economy, which has been struggling with stagnation.

USD: The U.S. Dollar steadied after yesterday’s losses as investors awaited the imposition of higher tariffs by President Trump. These tariffs, targeting China, Canada, and Mexico, are expected to increase U.S. inflation but benefit the Dollar in terms of trade and geopolitical interests. However, concerns over a potential economic slowdown and weakening consumer confidence limited the Dollar’s support.

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