EU‑US trade deal lifts Euro and Sterling under pressure
Daily Currency Update
Last week was characterised by a weaker US Dollar, which provided some relief to other currencies. The Euro benefited from a positive trade development, while the British Pound faced ongoing economic concerns and the prospect of an interest rate cut.The Australian Dollar, tied to commodity prices and the overall USD sentiment, saw some gains.
Key Movers
The EU-US trade deal has provided a positive catalyst for the Euro, as it reduces economic uncertainty and the threat of a damaging trade war, thereby supporting the EUR/USD exchange rate.The GBP is currently on the back foot, influenced by concerns about the UK economy, the possibility of a Bank of England interest rate cut, and the relative strength of the Euro following its trade deal with the US. Today's CBI data will be watched, but significant shifts are more likely to come from broader market sentiment or later in the week with more impactful data.
The Euro is enjoying a generally positive start to the week, primarily driven by the significant EU-US trade deal which has eased trade tensions. While there's no major Eurozone data today, market participants will be assessing the implications of this deal and looking ahead to upcoming economic releases later in the week for further direction.
Expected Ranges
- GBP/USD: 1.3410 - 1.3480 ▼
- GBP/EUR: 1.1460 - 1.1510 ▲
- GBP/AUD: 2.0560 - 2.06 ▲
- EUR/USD: 1.1620 - 1.1680 ▼