The Weekly Market Update
News & Insights
w/c 12th October: Wider Uncertainty
GBP
The British Pound gained support last week from expectations of a possible Bank of England interest rate rise, improved UK services data and hopes for closer ties with the EU. However, concerns about weakening economic growth limited further gains. This week, many in the market will focus on UK GDP figures and comments from Bank of England officials for clues about future decisions. Wider market uncertainty may also influence the Pound’s performance.
EUR
The Euro came under pressure last week as concerns about France’s growing debt and political uncertainty in Spain worried investors. Although it briefly recovered, continued concerns about French government finances may weaken confidence further. This week, investors will watch comments from European Central Bank officials and the latest inflation figures for clues about future decisions. Ongoing uncertainty surrounding France’s finances could continue to weigh on the euro.
USD
The US Dollar fluctuated last week as changing market sentiment influenced demand for safe-haven investments. Renewed inflation concerns and stronger employment data helped support the currency, despite weaker consumer confidence. This week, investors will focus on US inflation figures, which could strengthen expectations of a Federal Reserve interest rate rise. However, slower retail sales growth and changes in market confidence may limit the dollar’s gains.
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