Currency markets largely took a breather during yesterday's trading session as traders were starved of any fresh tariff headlines and keenly await the upcoming Senate vote on the US tax bill.
Sterling maintained its recent gains versus the US dollar, keeping it close to 3-year highs.
The euro suffered minor losses as traders reassess the increasing likelihood the European Central Bank (ECB) may well have to cut interest rates more than forecast to prevent inflation undershooting their 2% target. Euro sentiment also took a knock after data released showed Eurozone business activity unexpectedly weakened this month.
The dollar managed to eek out minor gains as traders squared up short positions ahead of the Senate vote on Trump's "Big, beautiful bill".
*Daily move - against G10 rates at 4:00 pm BST, 22.05.25
** Indicative rates - interbank rates at 4:00 pm BST, 22.05.25
Trump's trade policies continue to rile markets as uncertainty over the final destination of tariffs ramps up. As we get closer to the 90-day "reprieve" from the harsh temporary tariff levels markets are eagerly awaiting the final outcome. News that Trump’s tax bill passed trough the House had little impact as traders now await the result of the Senate vote.
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