Spectrum Weekly Report

GBP: The British Pound faces a potential setback as the Bank of England plans to cut interest rates, with market expectations of a 25-basis point cut and two more in 2025. This dovish stance could weigh on GBP, especially against the Euro and Dollar, as economic growth slows. While short-term volatility is expected, some negative outlooks are already priced in, and the Pound may recover later in February.

EUR: The Euro is facing continued weakness due to ongoing European Central Bank rate cuts and economic challenges in the region. This has led to a more pessimistic outlook from many strategists. Moreover, the Euro's struggles are also influenced by uncertainty around trade policies and broader global economic trends. Ultimately, while short-term forecasts remain negative, there is potential for the Euro to recover as economic conditions evolve.

USD: The U.S. Dollar's uptrend has been dampened by the Trump administration's decision to delay tariffs on Canada and Mexico. As a result, the Dollar Index dropped slightly. This has caused investors to reassess their positions amid ongoing trade uncertainty. While the immediate impact has been a pullback, the overall outlook for the dollar remains uncertain, influenced by shifting market conditions and potential future developments.

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