GBP: The British Pound fell to a three-month low against the U.S. Dollar following recent data showing a slowdown in wage growth in the UK, easing inflationary pressures and aligning with the Bank of England’s inflation outlook. Despite recent rate cuts, there are concerns about additional BoE cuts, which could leave the pound vulnerable. Investors currently assign a 15% probability to another rate cut in December, which may further pressure sterling.

EUR: The Euro continued to weaken against the U.S. Dollar, erasing all of its 2024 gains as fears grow over potential U.S. trade policies that could affect Eurozone exports, especially manufactured goods. With the U.S. economy gaining strength and potential protectionist measures on the horizon, the Euro’s outlook remains pessimistic. Challenges in the Eurozone’s export sector, particularly to the U.S., continue to weigh on the currency’s market performance.

USD: The U.S. Dollar reached a one-year high against a basket of currencies, bolstered by persistent inflation. The dollar index climbed nearly 0.5%, driven by steady core CPI and uncertainties in the long-term rate trajectory. While there are expectations for a 25-basis-point rate cut in December, the market’s attention has shifted to upcoming remarks from Federal Reserve Chair Jerome Powell for clues on the future direction of interest rates.