Published: 21/11/2025 By ECAP
BROADER CONCERNS
The British Pound remains pressured as weakening UK economic data, falling consumer confidence, and softer inflation reinforce expectations that the Bank of England will cut interest rates in December and continue easing through 2026. Sterling sentiment is further weighed down by looming tax hikes in the November 26 budget and ongoing fiscal uncertainty. Ultimately, with growth indicators softening, investors see limited upside, leaving the Pound vulnerable across major currency pairs.
The Euro lost some ground as weak German producer price data, ongoing industrial sluggishness, and cautious market sentiment weigh on the currency. While upcoming Eurozone PMIs may show pockets of resilience, overall momentum is subdued, reflecting broader concerns about the bloc’s growth trajectory. Ultimately, market participants note that meaningful support for the single currency will require clearer signs of economic improvement within the bloc rather than reliance on external policy shifts.
The U.S. Dollar holds steady after hawkish Federal Reserve minutes reduced expectations for a December rate cut, reinforcing support even as labour data sends mixed signals. Although job growth exceeded forecasts, unemployment ticked higher and wage gains remained subdued, leaving policy direction uncertain. Ultimately, persistent inflation concerns keep the Fed cautious, helping maintain underlying Dollar strength despite improved global risk appetite driven in part by robust tech-sector earnings.
Data supplied by GC Partners