Currency outlook. Credit: Currencies Direct

Euro

EUR/GBP: Up from £0.84 to £0.85

EUR/USD: Up from $1.13 to $1.14

The trajectory of the euro was broadly higher through the end of May and most of June, with demand for the single currency being underpinned by a hawkish tilt from the European Central Bank (ECB) following its June policy meeting.

The upside in the euro was aided by positive signals from EU-US trade talks, which helped offset some underwhelming Eurozone economic releases.

As we head into July, we may see a focus placed on upcoming Eurozone data amid growing concern over the trajectory of the bloc’s economy in the second quarter.

Pound

GBP/EUR: Down from €1.18 to €1.16

GBP/USD: Down from $1.35 to $1.34

The pound trended lower over the past month, with the currency’s previous gains triggering some profit-taking amongst GBP investors.

Some lacklustre UK economic data, including weaker-than-forecast jobs and GDP releases reinforced these losses.

GBP investors will keep a close eye on UK economic releases through July as they seek to gauge whether the Bank of England (BoE) will pursue an August rate cut. Underwhelming data is likely to boost rate-cut bets and weigh on the pound.

US Dollar

USD/GBP: Up from £0.73 to £0.74

USD/EUR: Down from €0.87 to €0.86

Trade in the US dollar has been highly volatile in recent weeks, with legal challenges against President Donald Trump’s tariffs and tensions in the Middle East triggering significant swings in the currency.

This volatility has been accentuated by mixed US economic releases, most notably in the wake of softer-than-expected inflation figures.

However, the Federal Reserve and its consistently hawkish messaging remained a source of support for the ‘greenback’ despite Trump’s repeated criticism of its monetary policy.

Looking ahead, Trump’s trade agenda will be back in focus in the coming weeks as we near the end of the 90-day pause on his reciprocal tariffs. Expect the US dollar to stumble if he seeks to reimpose his tariffs.

Currencies Direct have helped over 500,000 customers save on their currency transfers since 1996. Just pop into your local Currencies Direct branch or give us a call to find out more about how you can save money on your currency transfers.

Sponsored