Pound Sterling (GBP)
The Pound has weakened again after UK inflation came in lower than expected and government borrowing hit a record high. Annual inflation in September slowed to 3.8%, raising expectations that the Bank of England could cut interest rates in December. Meanwhile, public borrowing reached £20.2 billion — the highest since 2020 — leading markets to anticipate tighter fiscal measures in the next budget. These factors together could dampen economic growth and put more downward pressure on the Pound.
Euro (EUR)
The Euro has remained mostly stable, with few domestic economic developments driving its movement. Its value is currently influenced by overall market sentiment as investors wait for comments from ECB President Christine Lagarde. Given the cautious global outlook, the Euro may see mild support due to its reputation as a safe and stable currency. Analysts at Danske Bank expect the Euro to continue gaining against a range of other currencies.
U.S. Dollar (USD)
The U.S. Dollar has stayed strong, supported by declining gold prices and optimism around renewed U.S.–China trade discussions. Although it saw a minor dip during Asian trading hours, improved risk sentiment and hopes for progress in resolving the U.S. government shutdown have helped the Dollar recover. The next key moment for the Dollar will be Friday’s CPI report — the first inflation data released during the shutdown — which could shape expectations about the U.S. economy and the currency’s direction.