Pound Sterling (GBP)

The British Pound is declining as investor confidence in the UK’s fiscal outlook wanes. Concerns about debt sustainability, surging government spending, and rising inflation are driving the currency lower. This reflects growing doubts about the UK’s economic management, with the Pound losing value against other major currencies. Markets are reacting negatively to the government’s fiscal policies, anticipating increased borrowing, higher taxes, and possible reductions in public spending.

Euro (EUR)

The Euro is under pressure following weak economic data from Germany, including drops in industrial orders and retail sales, which have fuelled concerns about the region’s economic prospects. Investors now expect the European Central Bank to lower interest rates in early 2025. While these challenges weigh on the Euro, it may still find some support, though its outlook remains uncertain.

U.S. Dollar (USD)

The U.S. Dollar continues to strengthen on the back of robust U.S. economic data, including a rise in job openings and increased activity in the services sector. This has heightened expectations for a more aggressive Federal Reserve, reducing the chances of rate cuts. Additionally, the Dollar has benefited from the Euro’s weakness, amplified by disappointing German industrial data. Overall, the Dollar’s momentum remains solid as markets adjust their expectations.