Pound Sterling (GBP)

The British Pound experienced a dip at the end of last week as economic growth data released yesterday fell short of expectations. Growth for the July-September quarter was only 0.1%, below forecasts of 0.2%, with manufacturing output being a key factor in the decline. However, so far this morning Sterling has recovered most of its losses against both the Euro and Dollar.

Euro (EUR)

The Euro faced pressure due to concerns about potential US tariffs on European goods, which could escalate trade tensions. Additionally, dovish commentary from the European Central Bank (ECB) has weighed on sentiment, limiting demand for the currency. Market participants are also anticipating key inflation data from Germany later this week, which could influence the Euro’s trajectory further.

U.S. Dollar (USD)

The US Dollar has been volatile, starting last week strong but losing ground toward the weekend due to mixed economic data and increasing concerns about new tariffs announced by President Trump. Manufacturing struggles and inflation worries have added to uncertainty, while upcoming employment and PMI data this week may provide clearer direction for the currency.