Spectrum Weekly Report

GBP: The British Pound traded sideways after a strong rally against the U.S. Dollar and a sharp drop against the Euro. Investors are confident the Bank of England will maintain a restrictive policy due to strong wage growth, fuelling inflation in the services sector. Looking ahead, traders are focused on upcoming UK economic data, including GDP and factory figures, to assess economic strength.

EUR: The Euro has gained attention following Germany’s fiscal stimulus package, signalling a shift toward growth considerations over U.S. tariff threats. However, while fiscal measures in Europe could help mitigate tariff impacts, the potential for a continued Euro rally is limited, as market sentiment shifts away from the dollar amid broader economic challenges.

USD: The U.S. Dollar weakened amid concerns over a global economic slowdown and rising trade tariffs, with the Dollar index hitting a four-month low. Speculation about a potential U.S. recession, along with weak labour market and consumer sentiment data, contributed to the decline. Attention now shifts to upcoming U.S. inflation data for further insights into the economy and interest rate changes.

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