GBP: The British Pound has strengthened against the Euro and Dollar, supported by a low-volatility market environment. Its performance is underpinned by the UK’s elevated interest rates, as the Bank of England is expected to hold rates steady while central banks like the ECB and Fed may cut theirs.

EUR: The Euro saw modest declines yesterday, despite a surprising improvement in Eurozone consumer sentiment for November. A smaller-than-anticipated increase in German inflation seemed to weigh on the currency, though overall movement remained muted ahead of today’s release of Eurozone inflation data. Attention now turns to November’s consumer price index for the Eurozone, with expectations of rising inflation that could provide a boost to the Euro.

USD: The U.S. Dollar recovered some ground, though this may not fully account for the potential impact of renewed trade tensions. Some analysts suggest that the Dollar’s recent gains are primarily driven by economic data and interest rate differentials, with trade risks playing a minor role. If the U.S. implements permanent tariffs, the Dollar could experience some appreciation, whereas a strategy focused on negotiation would likely result in a smaller, short-lived increase.