GBP: The British Pound has been consolidating in a tight range as market participants keenly await Wednesday’s Autumn Budget announcement. Moreover, growing speculation for the Bank of England to cut interest rates in all two remaining meetings of the year could dampen further the British Pound’s appeal.
EUR: The Euro has been on the back foot lately but a potential fundamental boost could arrive on Wednesday with preliminary inflation data for October. The market anticipates inflation to pick up slightly, which, if confirmed midweek, could cushion the Euro. On the other hand, an undershoot in the inflation figures will only add to the belief that the ECB must get its skates on, which would weigh on the Euro.
USD: The U.S. Dollar rose to near three-month highs in early European trade this morning, before a string of key economic readings this week. U.S. house price data, GDP data for the third quarter and PCE price index data – the Federal Reserve’s preferred inflation gauge – are all due later this week.