Pound Sterling (GBP)

The Pound lost some ground against the Euro but held steady against the U.S. Dollar during yesterday’s trading. Its movement was largely shaped by political developments across Europe rather than UK-specific factors. However, persistent concerns about inflation, particularly in wage growth, may continue supporting the Pound.

Euro (EUR)

The Euro gained strength as markets reacted positively to signs of a resolution in France’s political turmoil. Confidence grew following the resignation of Prime Minister Barnier’s government, with President Macron reaffirming his commitment to completing his term. Marine Le Pen’s endorsement of a more gradual deficit reduction plan also provided stability. Additionally, the Euro held key support levels against major currencies, signalling improved fiscal stability and diminishing concerns over the French crisis.

U.S. Dollar (USD)

The Dollar edged lower ahead of key labour market data, with the Dollar Index slipping 0.1%. Recent reports highlighted slower private payroll growth and a deceleration in the services sector. Federal Reserve Chair Jerome Powell indicated a slower pace of rate cuts despite the resilience of the U.S. economy. While markets expect a rate cut in December, upcoming employment data will heavily influence these expectations.