GBP: The British Pound saw further strength during yesterday’s trading session, following the release of a mixed UK services PMI report. While growth in the UK’s crucial services sector was weaker than anticipated, the index still indicated underlying strength. Overall, the reading pointed to moderate growth, which helped limit GBP’s avoid any losses.

EUR: The Euro weakened further after data revealed that German business activity in September contracted at its fastest rate in seven months, suggesting that Europe’s largest economy may have entered a recession. Continued signs of economic weakness could increase the likelihood of another ECB rate cut in October.

USD: The U.S. Dollar has continued to weaken after last week’s substantial Federal Reserve rate cut, although investors seem to be dismissing the risk of a U.S. recession. However, markets are now pricing in 75 basis points of rate cuts by the end of this year, and nearly 200 basis points by December 2025.