GBP: The British Pound gained strength yesterday, bolstered by comments from Bank of England Deputy Governor Clare Lombardelli who emphasised persistent inflationary pressures in the service sector, dampening expectations for a BoE rate cut in December. The market is now looking towards Bank of England Governor Bailey’s speech tomorrow at 11am for further impetus.

EUR: The Euro has exhibited mixed performance this week, showing some resilience despite political unrest in France, where the government faces opposition over a divisive budget. Although market concerns are rising, the Euro has largely been shielded from significant impact, thanks to the recent decline in the U.S. Dollar. However, escalating French political risks, particularly the potential collapse of the government, could start to weigh on the Euro.

USD: The U.S. Dollar has weakened slightly over the past couple of days. Despite recent volatility, including a 6% drop in the Pound-Dollar exchange rate and a 7.5% drop in the Euro-Dollar exchange rate, the Dollar has stabilised near two-year highs. Strong U.S. economic growth and persistent inflation pressures suggest limited room for rate cuts, reinforcing the Dollar’s robust position.