The Bank of England’s more aggressive approach is helping the British pound gain traction. The Pound recovered when the BoE paused its lowering cycle last week, despite early pressure from a lower UK GDP projection. Looking ahead, the performance of the pound will be greatly influenced by UK economic data, such as government updates and inflation statistics.
Rekindled worries over a possible EU-US trade war are hurting the Euro and could slow Eurozone development. Furthermore, there is a strong correlation between the Euro and German economic confidence, with forthcoming data like the Ifo business climate index being crucial. Furthermore, the Euro’s future course will be determined by the eurozone’s economic indicators, such as PMIs, particularly in light of the private sector’s decreasing activity.
Future economic data, such as the core PCE price index and the final GDP figures for Q4 2024, will have an impact on the U.S. dollar, which has been staying steady. The dollar may be under pressure from a slowdown in US GDP, but it may also be supported by an increase in inflation. The Fed’s policy outlook and market sentiment will ultimately have a big impact on how the dollar moves during the next week.
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