Published: 26/09/2025 By ECAP
UPBEAT DATA
The British Pound is under pressure as political uncertainty rises following Andy Burnham’s potential challenge to Keir Starmer. Markets are unsettled by Burnham’s plans for massive welfare spending and borrowing, which echo past policy missteps that hurt Sterling. His dismissive view of financial market constraints has shaken investor confidence, leaving the Pound vulnerable and weakening against major currencies amid fears of unsustainable UK fiscal policy.
The Euro declined this week, weighed down by strong U.S. economic data and renewed dollar strength. While improved German consumer confidence offered some encouragement, it failed to shift overall sentiment. Moreover, political uncertainty in parts of the Eurozone, particularly France, added to downside risks. Nevertheless, expectations that the ECB will pause further rate cuts provided some support. Ultimately, the Euro remains vulnerable to upcoming economic data and policy commentary.
The U.S. Dollar strengthened following a series of upbeat economic reports, including robust growth, durable goods orders, and lower jobless claims. Federal Reserve Chair Powell emphasized uncertainty around inflation and signalled no urgency to cut rates further. This pushed back against market expectations of rapid easing. Ultimately, despite an initial dip after the recent rate cut, the Dollar rebounded as investors reassessed the Fed’s likely path forward.
Data supplied by GC Partners