GBP: The British Pound recently gained strength mainly against the Euro, supported by higher inflation and diminished expectations for Bank of England rate cuts. However, Sterling has struggled against an in-demand safe-haven US Dollar. Contributing risks include uncertainties surrounding the UK’s economic outlook and potential fiscal challenges. Nonetheless, the Pound continues to draw support from stronger growth and inflation trends.

EUR: The Euro continued its decline, driven by escalating tensions in Ukraine and persistent economic difficulties in Europe. The currency faces additional pressure from the possibility of U.S. tariffs under Trump’s administration and a sluggish economic outlook within the eurozone. Furthermore, the risks to European growth and inflation are increasingly skewed to the downside, adding to the Euro’s struggles. Geopolitical instability remains a significant factor weighing on its performance.

USD: The U.S. Dollar edged higher yesterday, nearing a one-year peak as the Dollar Index climbed 0.3%. Its rise was supported by geopolitical tensions, fiscal policy measures, and fading expectations for a December Federal Reserve rate cut. The Dollar’s strength was further underpinned by Trump-era policies, including increased tariffs and government spending. Moving forward, attention will turn to jobless claims data and upcoming Federal Reserve speeches, with the Dollar remaining in strong demand amid global uncertainties.