GBP: The British Pound has retreated slightly from its recent peaks. Some analysts believe the UK is better positioned than many European countries to handle trade-related uncertainties, which may allow the Pound to potentially hold onto its gains. However, there are still concerns over UK public finances which could also have the opposite effect.

EUR: The Euro saw some support against the U.S. Dollar yesterday as demand for the Greenback softened. The Euro’s outlook remains stable, underpinned by weaker USD sentiment and profit-taking. However, persistent inflation in Europe and economic challenges such as sluggish productivity growth pose risks. Investors are now awaiting key economic indicators, including European inflation data and PMI figures, to gain insights into the Eurozone’s economy and potential ECB policy actions.

USD: The U.S. Dollar declined from its recent one-year highs yesterday amid growing expectations that the Federal Reserve could lower interest rates in December. The dollar index slipped 0.1%, with markets pricing a 59.8% probability of a 25-basis-point rate cut. Nonetheless, the Dollar’s long-term outlook remains uncertain as attention shifts to upcoming economic data and potential rate adjustments.