Published: 23/09/2025 By ECAP
KEY DATA
The British Pound has remained under pressure, particularly against the Euro, trading near six-week lows amid fiscal concerns and anticipation of the UK’s autumn budget. In fact, weak UK data, cooling services PMI, and high public borrowing have weighed on sentiment. Analysts note markets are disregarding macroeconomic data, focusing instead on November’s budget risks. Ultimately, a sustained Pound recovery is unlikely before then.
The Euro is holding its ground amid cautious market sentiment and a weakening U.S. Dollar, despite concerns like France’s credit rating downgrade. In fact, gains were supported by improved German economic sentiment but capped ahead of key data releases. Investors await September’s PMI and confidence figures, with any downturn likely to pressure the Euro. Ultimately, ECB officials continue to signal caution, keeping EUR movement restrained amid ongoing uncertainty.
The U.S. Dollar traded in narrow ranges as investors awaited remarks from Fed Chair Jerome Powell following a recent 25-basis point rate cut. Despite a brief decline, the Dollar regained ground after the Fed highlighted ongoing inflation risks. Markets remain cautious, with attention turning to upcoming PCE inflation data. Ultimately, a stronger reading could lift the Dollar further, while uncertainty over future rate cuts continues to drive sentiment.
Data supplied by GC Partners