Daily FX Report – Dollar Strengthens Further

GBP: The British Pound weakened after a speech by BoE Governor Andrew Bailey this morning. Bailey indicated that the Bank of England might adopt a “slightly more aggressive” and “activist” stance on cutting rates if inflation continues to improve. With no significant UK economic data releases, the Pound’s movement is likely to be influenced by market sentiment. If investor caution persists, Sterling could face further pressure.

 

EUR: Meanwhile, the Euro remained steady against most currencies yesterday, slightly supported by the Eurozone’s latest unemployment data, which held at a record low of 6.4% in August, meeting market expectations. Today’s release of the final services PMI for September is expected to be the key factor influencing the euro.

 

USD: The U.S. Dollar strengthened further, continuing its recent gains as markets reacted to rising geopolitical tensions in the Middle East and anticipated additional U.S. economic data. The greenback also saw a boost from stronger-than-expected U.S. job openings on Tuesday, ahead of Friday’s highly anticipated monthly jobs report.