Pound Sterling (GBP)

The British Pound strengthened as UK wages unexpectedly rose in October, with regular pay increasing by 5.2%, surpassing expectations. This wage growth highlights mounting inflationary pressures, as businesses may raise prices to offset higher labour costs. Consequently, markets now anticipate fewer interest rate cuts from the Bank of England in 2025.

Euro (EUR)

The Euro experienced mixed signals yesterday, as weaker-than-expected German and French manufacturing PMIs contrasted with better-than-anticipated services data. German services PMI climbed to 51, while French services PMI reached 48.2. Additionally, the overall Flash Services PMI came in at 51.4, signalling modest growth. Looking ahead, investor attention is focused on the upcoming German Ifo and ZEW Economic Sentiment surveys for further clues on the Euro’s near-term trajectory.

U.S. Dollar (USD)

The U.S. Dollar strengthened despite mixed economic data, as a robust services PMI of 58.5 offset weak manufacturing figures, which fell to 48.3. The Dollar maintained its upward momentum despite the manufacturing shortfall, with focus now shifting to upcoming US Retail Sales and Industrial Production reports. These data points are expected to play a key role in determining the Dollar’s short-term direction.