The British pound (GBP) rose modestly against the U.S. dollar (USD) on Thursday but weakened sharply versus the euro (EUR), reflecting a complex interplay of economic headwinds and geopolitical uncertainty. A simultaneous release of soft economic indicators from both the United Kingdom and the United States compounded investor caution, prompting a shift toward perceived safer assets, including the single currency.

The UK corporate landscape witnessed a sharp rise in merger and acquisition (M&A) activity on Monday, with over $10 billion in deals announced—the busiest day of 2025 so far, according to data from Dealogic. The renewed wave of acquisitions is largely attributed to historically low company valuations, improved market stability, and shifting foreign exchange expectations as the USD weakens against the British pound (GBP).