However, the German trade balance showed a surplus of €20.4 billion, slightly below the forecast of €21.7 billion. Meanwhile, the French trade balance improved slightly to -€6.1 billion, beating expectations.
In the UK, the Halifax House Price Index increased by 0.8%, well above the anticipated 0.2%, signalling resilience in the housing market.
Looking ahead, key U.S. data will likely influence currency markets. The U.S. is expected to report a decline of 1.6 million barrels in crude oil inventories, which could affect inflation expectations. The 10-year bond auction and consumer credit data will also be watched closely.
The GBP/USD is currently trading at $1.27110, with a potential upward move if the UK’s RICS House Price Balance shows less decline than anticipated. The EUR/USD, priced at $1.09103, remains under pressure amid stronger U.S. economic forecasts.
The Dollar Index, at $103.241, could continue its ascent if U.S. economic data exceeds expectations, reinforcing the dollar’s strength against the euro and the pound.
