22/05/2026
Currency markets faced another volatile week as investors balanced easing geopolitical tensions with concerns about slowing growth, elevated bond yields, and longer-term inflation risks.
🇬🇧 GBP: Sterling recovered as concerns around UK fiscal policy eased, although softer labour data and slowing business activity continued to cloud the outlook despite lower inflation.
🇺🇸 USD: The dollar remained well supported as resilient US data and elevated Treasury yields reinforced expectations that the Fed may need to keep rates higher for longer.
🇪🇺 EUR: The euro was under pressure this week, as weak Eurozone PMI data and rising energy costs reinforced concerns around slowing growth and the ECB outlook.
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