GBP: The British Pound initially gained strength on Friday after UK retail sales exceeded expectations, rising by 1% compared to the forecasted 0.4%. However, Sterling’s gains were quickly reduced due to profit-taking. Additionally, concerns over the Labour government’s upcoming ‘painful’ budget next month appeared to dampen demand for the GBP. Today, investors will be watching the latest PMI data for further direction.

EUR: The Euro showed little movement on Friday, with no significant data from the Eurozone to drive the currency. Nonetheless, the Euro managed to make slight gains against riskier currencies as global market sentiment turned cautious. Eurozone PMI reports are also expected this morning, and with a likely decline in private sector activity, the EUR could face downward pressure.

USD: The U.S. Dollar stabilized after recent declines following the Federal Reserve’s interest rate cut last week. However, the dollar’s overall losses remained limited as the Fed indicated that neutral rates would be significantly higher than in the past. Investors are awaiting further signals from the central bank, with several Fed officials scheduled to speak in the coming days.