EUR – Remains under pressure as risk aversion builds and shifting expectations around Fed policy favour the dollar, keeping the single currency biased to the downside near key technical levels.

GBP – Trades with a softer tone as political strain weighs on sentiment, leaving sterling vulnerable despite periods of relative stability earlier in the week.

USD:

The dollar index has pushed higher, supported by a sharp rise in US yields as markets reassess the outlook for US monetary policy. With inflation concerns lingering and rate‑cut expectations being pushed further out, yield differentials continue to favour the dollar. Attention also remains on geopolitical developments, which are reinforcing cautious positioning and supporting USD as a defensive play.

EUR:

The euro has moved lower as risk sentiment deteriorates and the dollar strengthens, with EURUSD slipping back toward recent support. While the pair remains above longer‑term technical levels for now, momentum has softened, and downside risks persist if US yields continue to rise. Near‑term price action remains dominated by US dynamics rather than euro‑specific drivers.

GBP:

Sterling remains under pressure, with political uncertainty weighing on confidence and limiting the pound’s ability to recover against the dollar. While there are no immediate domestic data shocks, ongoing political strain is keeping investors cautious, particularly in an environment of broader USD strength. As a result, GBP remains exposed should risk aversion intensify further.