GBP: The British Pound tumbled against most major currencies last week, losing over 1% against both the Euro and the U.S. Dollar, after comments from BoE Governor Andrew Bailey dampened investor confidence. Looking ahead, with a limited release of UK economic data, GBP exchange rates may be influenced by an upcoming speech from BoE member Huw Pill. If Pill echoes Bailey’s recent statements, the Pound may continue to weaken and could finish the week lower against its peers.

EUR: The Euro struggled early last week following disappointing inflation data from Germany and the broader Eurozone. The weaker-than-expected figures pushed the Euro to a 29-month low against the British Pound, fuelling speculation of another ECB rate cut later this month. Additionally, the single currency remains under pressure after ECB Vice-President Luis de Guindos highlighted potential downside risks to the Eurozone economy.

USD: The U.S. Dollar remained steady in European trading today after posting solid gains last week, driven by Friday’s payroll data. The figures eased concerns of a U.S. economic slowdown and reinforced the view that the Federal Reserve may not need to implement steep rate cuts to support the economy. Investors have largely discounted the possibility of a 50-basis point cut in November and are now pricing in a more than 90% chance of a 25-basis point cut.