GBP: The pound is trading with some volatility following a substantial decline. Investors are cautiously eyeing the Bank of England’s potential interest rate cuts, with expectations that rates could decrease by 25 basis points to 4.75% as early as November or December. However, speculation on a rate cut has eased due to the UK Chancellor’s recent proposal to increase taxes by £40 billion to support public spending and investment. This move may lessen pressure on the Bank of England to stimulate the economy through rate cuts.

EUR: The euro saw fluctuations after the release of the latest Eurozone consumer price index data. October’s inflation figures were slightly above expectations, with headline inflation increasing from 1.7% to 2% and core inflation holding steady at 2.7%. This persistent inflation is reducing expectations for European Central Bank rate cuts, offering the euro mild support in the face of cautious trading.

USD: The Dollar is showing mixed performance due to conflicting economic indicators. While October’s private payrolls increased significantly, job openings in September hit their lowest point since January 2021. Meanwhile, the U.S. economy grew by 2.8% in the third quarter, just under the expected 3%. This combination of strong employment data and slightly slower-than-expected economic growth has added to uncertainty surrounding the Federal Reserve’s next moves.