Published: 13/11/2025 By ECAP
RESTORING CONFIDENCE
The British Pound fell as weak UK GDP data and renewed political tensions pressured sentiment. Growth slowed to just 0.1% in the third quarter, undershooting expectations and reinforcing speculation of a December Bank of England rate cut. Moreover, political instability surrounding Prime Minister Keir Starmer’s leadership further weighed on investor confidence, highlighting broader concerns over slowing economic momentum and fiscal uncertainty ahead of the upcoming budget.
The Euro saw mild support from stronger German producer price data and a stabilizing inflation outlook across the Eurozone. Gains were limited, however, by improving global risk appetite and a modest recovery in the U.S. Dollar. Ultimately, analysts noted that optimism around the region’s manufacturing resilience offered some relief, while investors awaited upcoming ECB commentary and industrial data for clearer direction later in the week.
The U.S. Dollar held steady after lawmakers ended the prolonged government shutdown, easing fiscal uncertainty and restoring investor confidence. Market focus turned to forthcoming economic data expected to reveal the shutdown’s impact. Mixed labour figures and growing bets on a potential December Federal Reserve rate cut tempered gains, leaving investors cautious as they awaited key job reports and policy signals to gauge near-term dollar momentum.
Data supplied by GC Partners