GBP: The British Pound gained value against both the Dollar and the Euro after the Bank of England reduced interest rates by 25 basis points yesterday. This positive movement was bolstered by BoE Governor Andrew Bailey’s cautious comments, signalling a careful approach to further rate reductions. Analysts anticipate that the BoE will continue making quarterly rate cuts, with the next expected in the first quarter of 2025.

EUR: The Euro also saw a sharp drop against the Dollar following Trump’s election, with analysts warning of further declines if Republicans gain control of the Senate. Stronger U.S. economic policies, such as tariffs and fiscal measures, could strengthen the Dollar, putting more pressure on the Euro. Looking ahead, the European Central Bank may also need to cut rates in response, which could further accelerate the Euro’s fall.

USD: The U.S. Dollar declined after the Federal Reserve cut interest rates yesterday. Although the Dollar initially saw a boost from the election results, its momentum faded as market expectations shifted. Analysts foresee a possible rate cut in December, with inflation concerns and the Fed’s hawkish stance providing some support. However, as U.S. economic growth slows and further rate cuts are anticipated in 2025, the Dollar’s strength may diminish in the longer term.