Pound, Dollar, and Euro Trends in Focus.

• GBP: UK consumer confidence improved slightly in April, driven by lower inflation and anticipation of tax cuts, but caution remains due to economic challenges and uncertainty over Bank of England’s stance on borrowing costs.
• USD: US GDP growth fell to 1.6% in the third quarter, below expectations, amid speculation about potential currency policies under a re-elected Trump and political pressures on the Fed. Mixed economic data complicates Fed interest rate decisions.
• EUR: Euro experienced a tepid recovery against the Dollar but faces technical downtrend pressures, with key support levels breached. Market attention shifts to upcoming CPI data from France and the Eurozone, which could influence European Central Bank’s decisions on interest rates and impact Euro’s strength.
• GBP outlook hinges on Bank of England forecasts and UK data scrutiny.
• USD growth data disappointed, leading to speculation about potential currency policies under Trump and political pressures on the Fed. Euro’s recovery against the Dollar remains uncertain amidst technical downtrend pressures.

GBP: The Pound’s trajectory remains intertwined with Bank of England forecasts, alongside ongoing scrutiny of UK data. April saw a slight uptick in the UK GfK consumer confidence index to -19 from -21, exceeding consensus expectations. Improvement was noted across four key indicators, reflecting the impact of lower inflation and anticipation of tax cuts on household budgets. However, caution persists amidst economic and fiscal challenges, with attention on the Bank of England’s stance on borrowing costs.

USD: US growth data disappointed, with third-quarter annualized GDP growth at 1.6%, below forecasts. Speculation swirled about potential currency policies under a re-elected Trump, raising uncertainties. Political pressures on the Fed loom, with implications for the dollar’s strength. Mixed US economic data adds complexity, with inflation data influencing Fed interest rate decisions at the upcoming FOMC meeting.

EUR: The Euro saw a modest recovery against the Dollar but faces technical downtrend pressures. Euro-Dollar broke key support levels, signaling potential further decline. Market focus turns to upcoming CPI data from France and the Eurozone. Any deviations from expectations could impact the European Central Bank’s decision on interest rates, with potential implications for Euro strength against major currencies.