GBP
The British Pound continues to trade under pressure as markets anticipate a 25-basis point rate cut from the Bank of England. Softer UK services data and a rise in unemployment have dampened sentiment, though persistent inflation and stable consumer spending offer some resilience. While overall outlook remains cautious, some analysts believe Sterling may be oversold, leaving room for a modest recovery if the BoE signals a gradual policy path.
EUR
The Euro is facing headwinds following a sharp decline in Eurozone investor confidence, partly due to disappointment over the EU-US trade deal. That said, upcoming data releases – including services PMI and producer price inflation – could provide support if they point to stronger economic activity and rising price pressures. Such outcomes may reinforce expectations of further ECB tightening and limit downside for the Euro.
USD
The U.S. Dollar has slipped following a weaker-than-expected July jobs report and downward revisions to prior figures, fuelling speculation of a Fed rate cut in September. However, markets are watching the ISM services PMI for signs of economic strength that could temper dovish expectations. For now, policy uncertainty and mixed economic signals continue to drive cautious sentiment toward the Dollar.