GBP: This morning, the British Pound gave back some of its recent gains after the UK unemployment rate rose to 4.3% in September, above the anticipated 4.1%. This increase puts added pressure on the Bank of England to consider further monetary easing. Despite recent economic expansion, wage growth has surpassed expectations, posing a challenge for the Bank, particularly with a new budget that may drive inflation higher in 2025.

EUR: Meanwhile, the Euro saw a significant decline against other currencies amid worries about political instability in Germany. The currency’s outlook remains weak, especially as the U.S. prepares to impose higher tariffs. Additionally, internal pressures, such as Germany’s sluggish economy and a lack of cohesion in European policy, threaten confidence in the Eurozone.

USD: The U.S. Dollar, near a four-month high, is buoyed by the expectation that a second Donald Trump presidency could lead to inflationary policies, keeping interest rates higher for longer. Investors are now focused on upcoming U.S. inflation data, which could offer further insight into the Federal Reserve’s future rate decisions and the broader economic trajectory in the months ahead.