GBP: The British Pound saw a slight increase this morning following the release of UK inflation data. Core CPI rose by 3.6%, exceeding the 3.5% forecast and accelerating from July’s 3.3%. This rise in inflation could lead investors to scale back expectations for another interest rate cut by the Bank of England before year-end.

EUR: The Euro remained mostly steady in yesterday’s trading after Germany’s ZEW economic sentiment index dropped more sharply than anticipated, hitting its lowest point since October 2023. This is the third consecutive decline, and reduced optimism in Europe’s largest economy continues to weigh on the Euro.

USD: Meanwhile, the U.S. Dollar weakened this morning as markets prepared for an anticipated interest rate cut by the Federal Reserve later today. However, there is some division among investors, with a 64% chance being priced in for a 50 basis point cut, while others see a 36% likelihood of a 25 basis point cut.