The Weekly Market Update
News & Insights
w/c 5th October: Rate Expectations
GBP
The British Pound strengthened last week, supported by stronger UK economic growth and growing expectations that interest rates could rise. Improved economic figures and positive comments about the UK’s relationship with Europe also helped sentiment. Looking ahead, the Pound could remain supported if UK data stays strong, although signs of weaker services activity could limit further gains.
EUR
The Euro faced pressure last week amid concerns over energy costs, weaker economic confidence and worries about government finances. Mixed economic data provided little support, while inflation remained elevated. Looking ahead, the Euro could recover if economic activity improves, particularly in Germany and across the wider region. Upcoming data on services, retail sales and industrial production will be important for its direction.
USD
The US Dollar had a mixed week as expectations for another interest rate rise weakened. The currency initially benefited from higher energy prices and global uncertainty, but weaker inflation and employment figures put pressure on the Dollar. Looking ahead, investors will focus on Federal Reserve meeting minutes for clues about future interest rates, which could influence the Dollar’s direction.
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