Daily FX Report – Eyes On Budget

GBP: The British Pound has remained relatively steady as markets await tomorrow’s Autumn Budget. Although concerns of a mini-budget-style crisis have largely faded, some uncertainty lingers ahead of the announcement. The Labour government has cautioned that this will be a “painful” budget, involving “tough decisions.” Analysts predict the budget will have a noticeable impact on the Pound.

EUR: Meanwhile, the Euro is set to post a monthly decline of roughly 3% due to worries about sluggish regional growth. Despite the ECB’s three rate cuts this year, speculation is mounting that the central bank may opt for a more substantial reduction at its next meeting, especially if Thursday’s annual eurozone inflation data again falls short of the ECB’s 2.0% target.

USD: The U.S. Dollar held steady in yesterday’s trading session, positioning itself for a strong monthly gain against other G10 currencies. Recently, the Dollar surged to three-month highs driven by growing speculation of a Trump victory, which is anticipated to bring more inflationary policies in the months ahead.