GBP: This morning, the British Pound surged against other currencies after stronger-than-expected UK retail sales data for September was released, showing a 0.3% increase in consumer spending. The positive figures are likely to reduce expectations that the Bank of England will cut interest rates in its two remaining meetings this year.

EUR: The Euro continued its decline yesterday as the European Central Bank lowered interest rates for the third time this year. ECB President Christine Lagarde noted that inflation in the eurozone is increasingly under control, though the region’s economic outlook has deteriorated.

USD: Meanwhile, the U.S. Dollar stabilised in early European trading after reaching a 2.5-month high. Yesterday’s robust retail sales data, alongside continued strength in the labour market, supported expectations that the Federal Reserve will cut interest rates by 25 basis points in November.