Pound Sterling (GBP)
The British Pound slipped after the Bank of England left interest rates unchanged last Thursday, while hinting at the potential for further cuts. Sentiment towards Sterling was also weighed down by rising public borrowing and uncertainty ahead of the autumn budget. Overall, investors turned more cautious, anticipating looser monetary policy. Persistently weak economic data and fiscal risks continue to cloud the outlook for the currency.
Euro (EUR)
The Euro has been trading in a narrow range, reflecting cautious investor sentiment amid conflicting signals on eurozone growth and inflation. Although structural challenges remain—such as political instability and uneven productivity—the currency has shown resilience. Support comes from expectations of stronger regional growth, potential capital inflows, and a shift away from US assets. A decisive move out of the current range could determine the Euro’s trajectory into year-end.
U.S. Dollar (USD)
The US Dollar recovered after hitting its lowest level since early 2022, following the Federal Reserve’s first rate cut of the year. While markets anticipate further easing, the Fed’s projections suggest fewer cuts, leaving scope for a near-term rebound. Strong employment data also provided a lift. However, a softening labour market and political uncertainty may weigh on the Dollar as 2026 approaches.