Pound Sterling (GBP)
The British Pound is losing ground as the UK economy slows and government finances raise concern. The OECD projects only 1% GDP growth in 2026, pointing to continued weakness in the currency. At the same time, higher taxes, policy uncertainty, and persistent inflation are discouraging investment and reducing real returns. Unless the November budget introduces meaningful pro-growth measures, the Pound will likely stay under pressure.
Euro (EUR)
The Euro is gaining momentum, helped by the Eurozone Composite PMI climbing to a 16-month high. Strong services activity and signs of stability in manufacturing are driving the improvement, with Germany leading the recovery while France lags amid political uncertainty. Employment across the bloc has held steady, and inflation has picked up slightly. Together, these factors ease the need for the ECB to cut rates further, providing broad support for the currency.
U.S. Dollar (USD)
The U.S. Dollar is holding steady after cautious comments from Fed Chair Jerome Powell, who stressed the challenge of balancing inflation control with a healthy labour market. While he avoided committing to a timeline for rate cuts, markets still anticipate two this year. For now, mixed economic data and limited investor risk appetite are keeping the Dollar in a tight range, with traders watching upcoming inflation and housing numbers for clearer direction.