By James Tucker
GBP – EUR
This week, both the Pound and the Euro traded within relatively small ranges as markets focused on interest-rate expectations and key economic data. Yesterday, UK GDP surprised to the upside, coming in at 0.2% compared with forecasts of a 0.1% decline. This initially gave the Pound a boost against the Euro. However, those gains were short-lived and had faded by the end of the trading session.
Despite this pullback, the Pound has generally firmed against the Euro following the stronger-than-expected growth data. UK GDP growth has helped ease concerns about a possible economic contraction, although investors remain cautious ahead of the UK inflation release scheduled for 21 January.
EUR – USD
The Euro traded in a narrow range against the US Dollar throughout the week, showing no clear direction. This reflects mixed confidence in the Eurozone economy and a cautious market stance ahead of upcoming European Central Bank decisions. Overall, the Euro remained relatively stable, though underlying sentiment remains weak.
From a technical perspective, EUR/USD continues to show bearish signals. The pair is trading below key moving averages, suggesting further downside pressure. Momentum indicators remain negative, and the relative strength index is near oversold levels, indicating that selling pressure is still present. While short-term bounces are possible, the broader tone remains soft.
GBP – USD
The US Dollar was volatile this week as investors reacted to uncertainty around future US interest-rate policy and broader economic signals. The Dollar strengthened slightly earlier in the week as market sentiment improved, but later lost momentum. Despite positive UK economic data, the Pound struggled to hold gains against the Dollar.
This reflects ongoing concerns that the Bank of England may still move towards interest-rate cuts later in the year, limiting upside for Sterling.
Overall, currency movements this week were modest, with no strong trends emerging. Markets remain focused on central bank policy expectations and upcoming economic data, which continue to drive short-term movements in the Euro, Pound and US Dollar.
If you have any upcoming currency requirements, make sure you keep in contact with your currency consultant for regular updates and to help make your money go further.