• GBP faces pressure as Bank of England signals dovish stance amid looming disinflation.
• USD could strengthen on April PMIs, potentially delaying anticipated Fed interest rate cuts.
• Positive market sentiment and geopolitical easing buoy USD, offsetting initial losses.
• EUR experiences mixed performance, influenced by Eurozone consumer outlook and ECB rate cut expectations.
• Despite negative consumer confidence, EUR remains stable amid growing risk appetite.

GBP: The Bank of England is leaning dovish amidst looming disinflation in the UK, exerting downward pressure on the Pound. ING Bank’s analysis suggests a probable interest rate cut in June, with expectations of further cuts this year. Bank of England officials hint at upcoming rate adjustments, emphasizing the UK’s distinct inflation dynamics compared to the US. The Pound has depreciated significantly, with analysts predicting continued weakness.

USD: Preliminary April PMIs in the US could bolster the Dollar, with forecasts indicating potential strength. Economic resilience may delay anticipated interest rate cuts by the Federal Reserve, buoyed by positive market sentiment and geopolitical easing in the Middle East. Despite initial losses, rising US Treasury bond yields reflect confidence in the economy, prompting adjustments in rate cut expectations.

EUR: The Euro’s performance was mixed on Monday, influenced by Eurozone consumer outlook data and growing risk appetite. While consumer confidence remains negative, it has improved significantly since February 2022, potentially fueled by expectations of ECB rate cuts. Risk-on sentiment limited significant movements in the safe-haven Euro, maintaining a relatively stable trading range.