Weaker Data
GBP
The British Pound was subdued as weaker UK services growth data offset support from broader market conditions. Although the UK services sector continued to expand in August, growth was slightly slower than initially estimated. The Pound may remain under pressure if Bank of England Governor Andrew Bailey takes a cautious approach in upcoming comments. Investors will also watch UK borrowing costs and wider market sentiment for direction.
EUR
The Euro remained subdued as investors weighed signs of slowing activity across the region. Recent economic data pointed to softer growth, while uncertainty around the European Central Bank’s next steps limited support for the currency. Market attention is likely to remain focused on upcoming economic figures and central bank comments, with the outlook for regional growth and inflation shaping sentiment towards the Euro.
USD
The US Dollar weakened as improving market confidence reduced demand for its safe-haven appeal. Falling government borrowing costs helped ease concerns about pressure on economic growth, while changing expectations around the Federal Reserve also weighed on the dollar. Attention now turns to the latest US jobs report, with weaker employment growth potentially adding further pressure if investors expect less need for higher interest rates overall.
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