Published: 12/11/2024 By ECAP
The British Pound retraced part of its recent gains this morning as the UK unemployment rate rose to 4.3% in September, higher than the expected 4.1%. This adds pressure on the Bank of England to ease monetary policy further. However, despite recent economic growth, wage growth remains above expectations, and the Bank faces challenges with a new budget likely to increase inflation in 2025.The Euro weakened significantly against its peers, driven by concerns over German political instability. Moreover, with the U.S. poised to implement higher tariffs, the Euro's outlook remains bearish. Adding to this, the bloc’s single currency also faces pressure from internal challenges, including stagnation in Germany’s economy and a lack of cohesion in European policies, which could dampen confidence in the Eurozone.
The U.S. Dollar stayed near a four-month high, supported by expectations that a second Donald Trump presidency would bring inflationary policies, keeping interest rates elevated for an extended period. Investors are now focused on upcoming U.S. inflation data, which could offer additional clues about the Federal Reserve’s future interest rate decisions and the broader economic outlook in the coming months.
Data supplied by GC Partners