GBP: The British Pound surged to a 29-month high against the Euro yesterday, driven by expectations that the Bank of England (BoE) will slow its rate-cutting cycle compared to other G7 central banks. Investors are now anticipating one more 25-basis-point rate cut from the BoE later this year, providing continued support for the Pound.

EUR: Meanwhile, the Euro struggled to gain momentum, as traders await today’s Eurozone inflation data before making significant moves. The report is expected to show inflation dipping below the European Central Bank’s (ECB) 2% target for September, potentially reinforcing the likelihood of a 25-basis-point rate cut at the ECB’s October meeting.

USD: The U.S. Dollar saw increased interest following a more hawkish speech from Federal Reserve Chair Jerome Powell, who projected two more 25-basis-point rate cuts this year, contingent on economic performance. Investors adjusted their expectations, scaling back bets on a more aggressive rate-cutting approach by the Fed.