Pound Sterling (GBP)
The Pound held steady but lacked upward momentum, weighed down by disappointing UK services data and ongoing political uncertainty. Brief support came after Labour’s measured fiscal messaging, though gains quickly faded. With few domestic drivers in play, Sterling largely drifted. Analysts caution that recent resilience reflects broader global risk appetite rather than optimism over the UK’s economic prospects.
Euro (EUR)
The Euro traded sideways despite lacklustre regional data. Unemployment edged higher, while inflation figures gave little guidance on policy direction. Conflicting signals from purchasing and producer surveys limited progress ahead of the weekend. With the European Central Bank expected to stay on hold and no clear catalysts emerging, the single currency remained confined to a tight range as investors awaited fresh developments.
U.S. Dollar (USD)
The Dollar lost ground as the government shutdown dragged on and soft labour data fuelled expectations of Federal Reserve rate cuts. The delay of key economic releases left markets short of direction. A court ruling confirming a Fed governor’s position provided some reassurance, but overall sentiment stayed fragile. Political uncertainty and speculation over policy moves weighed on the currency throughout the week, denting investor confidence.