Pound Sterling (GBP)
The British Pound remains under pressure as the UK’s economic growth slows and fiscal uncertainty increases ahead of the 26 November budget. GDP rose by only 0.1% in August, while July’s figures were revised lower, signalling a stagnating economy. Chancellor Rachel Reeves has admitted that the UK is caught in a “doom loop” of rising taxes and weak growth. In addition, market expectations of a potential Bank of England rate cut have further dampened Sterling’s outlook.
Euro (EUR)
The Euro has shown resilience amid easing political tensions in France and shifting macroeconomic conditions. Prime Minister Lecornu’s compromise on pension reforms has reduced near-term political risk, helping to stabilise investor confidence. Although industrial activity across the Eurozone continues to contract, markets have welcomed the respite from French political upheaval.
U.S. Dollar (USD)
The US Dollar weakened following dovish comments from Federal Reserve Chair Jerome Powell, who signalled a willingness to cut interest rates amid concerns about the labour market. Market sentiment has turned risk-on, favouring currencies such as the Pound and Euro over the safe-haven Dollar. With investors now pricing in two rate cuts by the end of the year and further easing in 2026, the Dollar has lost momentum. Despite earlier strength, the Fed’s shift in tone has undermined near-term Dollar performance.