USD: The dollar remains well supported this morning, with markets taking confidence from recent US economic data and the expectation that the Federal Reserve will keep rates unchanged for the foreseeable future. While there is less pressure for further tightening, the combination of resilient growth and relatively high yields continues to underpin the greenback. As a result, USD remains broadly supported against both EUR and GBP.

EUR: The euro has strengthened against the dollar, supported by a softer USD backdrop and growing expectations that the ECB could still deliver further tightening later this year if inflation remains persistent. While the market expects the ECB to remain cautious in the near term, the prospect of another rate increase in September is providing support to the single currency. For now, EUR remains relatively well bid against the dollar.

GBP: Sterling remains relatively subdued, with the Bank of England expected to remain on hold as policymakers assess ongoing economic risks. While the pound has been relatively stable, there is little conviction behind recent moves and the currency continues to lack a clear domestic catalyst. As a result, GBP is likely to remain sensitive to broader moves in USD and evolving central bank expectations.