GBP: The British Pound surged to new yearly highs against both the U.S. Dollar and the Euro after remarks from BoE Governor Andrew Bailey. Bailey indicated that UK interest rates would decrease ‘gradually’, reinforcing the expectation that the BoE may be less aggressive than other central banks in easing its monetary policy. However, with limited UK economic data available today, the Pound may struggle for clear direction

EUR: The Euro weakened further as Eurozone PMI fell to 48.9 this month, down from August’s 51.0, dropping below the 50 threshold that separates growth from contraction for the first time since February. The decline was widespread, with Germany, the Eurozone’s largest economy, facing a deepening downturn, while France, the second largest, slipped back into contraction after a temporary boost from August’s Olympics.

USD: The U.S. Dollar weakened yesterday as China’s new stimulus measures boosted market risk appetite, reducing demand for safe-haven currencies. This USD decline was further driven by a sharp drop in U.S. consumer confidence, marking the largest fall in over three years. With little U.S. economic data due today, the Dollar could face additional losses if market sentiment stays positive.