The EUR/USD currency pair is attempting a recovery after hitting lows near 1.0820, amid a strong showing by the US Dollar. Meanwhile, the US Treasury Secretary, Scott Bessent, has downplayed the recent multi-week decline in US equity indexes, attributing it to "recent volatility." On Thursday, the GBP/USD continues to fluctuate around 1.2950, hindered by the resilience of the US Dollar, which prevents the pair from gaining traction.
In the UK, speculation about a potential reset of UK-EU economic ties is mounting. Such sweeping changes could offer a much-needed boost to the UK government's growth agenda. The government is under pressure to stimulate higher economic growth as it grapples with spending cuts and potential tax hikes looming later this year.
The prospect of a US government shutdown remains a concern, with Treasury Secretary Bessent remarking on its potential disruptiveness. Additionally, tokens like Sandbox, Decentraland, and Axie Infinity are experiencing corrections after peaking in early December, following broader market trends.
Bessent has expressed confidence in the ongoing economic measures under the Trump administration, including the tax bill.
"We are hoping to get to a tax bill in the coming weeks," stated United States (US) Treasury Secretary Scott.
The EUR/USD pair remains pressured due to ongoing tariff concerns and disappointing February US Producer Price data. Despite the strength of the US Dollar, some analysts view its weakening as a natural adjustment given the pricing dynamics.
"A lot was priced in, it is natural to see an adjustment," Bessent commented.
The UK government is particularly keen on recalibrating its economic relationship with the EU as part of its broader strategy to invigorate growth. The strengthening dollar poses challenges for the GBP/USD pair, which remains volatile.
"We are focused on the real economy," emphasized Bessent, underscoring the administration's commitment to economic stability.
As discussions about UK-EU ties progress, analysts suggest that any agreement could provide significant relief to the beleaguered UK economy. However, the potential for a US government shutdown adds an element of uncertainty that could ripple through global markets.