Published: 14/11/2025 By ECAP
RENEWED WEEKNESS
The British Pound remains pressured as weak UK GDP data, rising unemployment, and mounting expectations of a December Bank of England rate cut undermine confidence. Political instability is amplifying downside risks, with reports of internal Labour Party manoeuvring and Chancellor Rachel Reeves’ tax U-turn alarming markets. Ultimately, fiscal uncertainty ahead of the Autumn Budget continues to weigh on sentiment, leaving Sterling exposed to renewed weakness across major currency pairs.
The Euro is drawing measured support from improving regional sentiment as investors look toward upcoming Eurozone GDP figures expected to confirm a modest recovery. Although industrial production data has been softer than hoped, the bloc’s economic outlook remains steady enough to maintain EUR resilience. If growth indicators strengthen, the Euro could continue to stabilise against key counterparts, benefiting from firmer confidence in the region’s gradual but consistent economic improvement.
The U.S. Dollar has weakened following the government’s reopening, which reduced safe-haven demand and boosted risk appetite. Market uncertainty is elevated as missing inflation and labour data leave the Federal Reserve without key inputs ahead of its December meeting. While hawkish commentary may offer temporary support, broader forecasts point to medium-term Dollar softness due to expected Fed easing, uneven economic momentum, and heightened sensitivity to market volatility.
Data supplied by GC Partners