Pound Sterling (GBP)

The Pound dipped slightly against the Euro and Dollar after UK wage growth fell short of expectations, hinting at weaker inflation pressures. Alongside a rise in unemployment, this has increased the chances that the Bank of England may cut interest rates twice this year. As a result, investors sold off the Pound, though global economic trends may keep it from falling much further despite signs of a cooling UK job market.

Euro (EUR)

The Euro gained strength, helped by a firm stance from the European Central Bank. Although the ECB lowered interest rates by 0.25% last week, President Lagarde indicated that further cuts may be limited. Markets now anticipate only one more rate cut, likely in December. Confidence in the eurozone’s growth outlook and possible German government spending are also supporting the Euro amid broader global uncertainty.

U.S. Dollar (USD)

The Dollar slipped by 0.3% yesterday, as optimism over trade talks between the U.S. and China in London overshadowed support from a strong U.S. jobs report last Friday. Investors stayed cautious, waiting for results from the talks and upcoming inflation data. Despite earlier gains during Asian trading, ongoing concerns about trade policy and economic outlook continued to weigh on the Dollar.