Dollar Weighed by Trade Uncertainty, Euro Firm, Sterling Resilient but Cautious.

USD – The dollar is under pressure as trade policy uncertainty and shifting risk sentiment weigh on the greenback across major pairs.

EUR – The euro is firming on broad USD weakness, with limited eurozone data leaving direction driven largely by external factors.

GBP – Sterling is showing modest resilience on supportive UK data but remains vulnerable to political risk and evolving BoE rate expectations.

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USD:

The US dollar is trading lower across major FX pairs this morning, pressured by renewed uncertainty around US trade policy. A recent Supreme Court decision striking down elements of former President Trump’s tariff authority and subsequent tariff announcements have injected volatility into markets and weighed on the dollar as traders reassess growth and trade-driven risk appetite. This backdrop has supported risk-sensitive currencies and lifted counterparts such as the euro and pound, while yields remain sensitive to global sentiment and safe-haven flows. USD weakness persists as tariff policy uncertainty and broader risk sentiment drag on the greenback.

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EUR:

The euro is holding firmer against the dollar and sterling on the back of broad USD weakness, as trade tensions and global policy risks are driving flows away from the greenback. With limited new eurozone data this morning, EUR/USD is reacting to external drivers, and positioning remains constructive with the pair finding support near key technical zones amid a rebound in risk sentiment. The euro benefits from a weaker USD and improved risk sentiment, with limited domestic catalysts on the calendar.

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GBP:

Sterling is trading with modest strength against the dollar and near-stable versus the euro, supported in part by recent upbeat UK PMIs and retail sales data, although political and monetary policy headwinds persist. Markets remain cautious over narrowing UK-Eurozone yield spreads, by-election jitters and expectations of Bank of England rate cuts — all of which have kept sterling on the defensive but contained near recent ranges. Sterling shows resilience amid mixed UK data but remains sensitive to political uncertainty and BoE rate expectations.

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