Pound Sterling (GBP)
The British Pound saw little movement as a quiet week in the UK’s economic calendar offered no new catalysts for traders. Investors avoided taking major positions ahead of an upcoming speech by the Bank of England Governor, who was expected to provide clues about future interest rate decisions. With no significant data releases, uncertainty remained high, leaving the Pound influenced mainly by global market sentiment and external events.
Euro (EUR)
The Euro dropped sharply as political instability in France rattled investors. The resignation of yet another Prime Minister exposed deep divisions within the government and fuelled worries about France’s rising debt levels and stalled fiscal reforms. This political turmoil triggered selling pressure on the shared currency. As long as uncertainty persists, the Euro is likely to remain under strain in the markets.
U.S. Dollar (USD)
The U.S. Dollar strengthened even amid domestic headwinds, such as a prolonged government shutdown and growing expectations of future rate cuts. Normally, these factors would weaken the currency, but heightened global political risks drove investors toward the Dollar’s safe-haven appeal. With several key U.S. economic reports postponed, attention turned to upcoming Federal Reserve speeches, which could shape short-term Dollar movements depending on how policymakers communicate their outlook.