Pressured Markets
GBP
The British Pound remained under pressure following the Bank of England’s decision to keep interest rates unchanged. Investor confidence weakened as the bank appeared more cautious than expected, although plans to slow the reduction of its bond holdings provided some support. Looking ahead, weaker UK retail sales could add further pressure by raising concerns about consumer spending and the wider economy.
EUR
The Euro was subdued after recent weakness, with investors watching for signs that could influence confidence. Lower than expected inflation in August also weighed on sentiment, suggesting price pressures may be easing. Attention now turns to a speech from European Central Bank President Christine Lagarde. A firmer tone could provide support for the euro, while investors will continue to assess the outlook for the European economy.
USD
The US Dollar gained support after the Federal Reserve raised interest rates and signalled a firmer approach to monetary policy. This strengthened investor confidence in the currency. Looking ahead, stronger US industrial production could provide further support. The Dollar may also benefit if global markets become more cautious, as investors often turn towards it during periods of uncertainty.
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