Dollar Supported by Strong Jobs Data, Euro Steady, Sterling Stabilises Amid UK Uncertainty.
USD – Strong US labour data is supporting the dollar and prompting markets to scale back expectations of near-term Fed rate cuts.
EUR – The euro is trading steadily, with direction largely dictated by broader dollar strength rather than eurozone-specific drivers.
GBP – Sterling is stabilising after recent political concerns but remains sensitive to UK growth data and shifting Bank of England rate expectations.
USD:
The US dollar is showing renewed resilience today amid strong labour market signals, with traders pushing back expectations of near-term Federal Reserve rate cuts. A robust U.S. jobs report has underpinned the dollar and lifted Treasury yields, supporting the greenback against most major currencies. This has diminished some of the recent bearish pressure that had built up due to broad USD selling in earlier sessions, though markets remain cautious heading into upcoming inflation data. Solid U.S. jobs data is bolstering the dollar and reducing market bets on near-term rate cuts, lifting the greenback across FX markets.
EUR:
The euro is holding steady against the dollar, with EUR/USD trading around recent levels as market sentiment is heavily influenced by broader dollar strength. While no major eurozone data has surfaced today, the euro’s performance continues to reflect external drivers rather than fresh regional catalysts. Traders remain attentive to ECB commentary and the evolving calendar of U.S. inflation and labour releases, which are shaping flows in EUR/USD. The euro is steadied largely by external factors and softened dollar momentum, but near-term upside is capped without stronger eurozone fundamentals.
GBP:
Sterling is showing some signs of stability after recent political uncertainty, with GBP/USD finding modest support in early European trading. Investor concerns around UK leadership have eased somewhat following comments from senior officials, though broader uncertainty continues to affect pound sentiment. The pound’s performance also remains sensitive to comparative monetary policy expectations, with markets pricing in potential Bank of England easing later in the year amid slowing UK growth data. Attention is turning to today’s UK GDP release and the broader UK macro calendar for clues on future BoE decisions.
Economic Calendar
| Expected | Previous | ||
|---|---|---|---|
| 07:00 | GBP Gross Domestic Product (YoY) (Q4) | 1.2% | 1.2% |
| 07:00 | GBP Gross Domestic Product (QoQ) (Q4) | 0.2% | 0.1% |
| 07:00 | GBP Industrial Production (MoM) (Dec) | 0% | 1.3% |
| 07:00 | GBP Manufacturing Production (MoM) (Dec) | 0% | 1.9% |