Growth Data
GBP
The British Pound is supported by signs that the UK economy is holding up better than expected. Recent figures showed stronger economic growth, giving confidence despite concerns over rising household costs and uncertainty ahead of the Budget. Demand for UK government debt is also helping. However, economic momentum could slow in the coming months as higher living costs and budget uncertainty weigh on households and businesses.
EUR
The Euro slipped as economic sentiment across the region weakened, with confidence falling unexpectedly in September. Attention now turns to German economic data, particularly inflation, which could influence expectations around interest rates. Retail sales figures may also provide clues about economic activity. Overall, the Euro faces a period of uncertainty as investors assess the health of the regional economy and the outlook for future policy.
USD
The US Dollar strengthened as elevated energy prices increased demand for safer assets, while expectations of higher US interest rates continued to support the currency. Investors are now focused on US inflation data, which could reinforce expectations for further Federal Reserve action. Job market figures may also influence the outlook, particularly if weaker results lead markets to reassess expectations for future interest rate decisions.
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