The Weekly Market Update
News & Insights
w/c 26th October: Budget Week
GBP
The British Pound gained support last week from unexpectedly lower unemployment and higher inflation in the UK. However, concerns about government borrowing and falling retail sales limited its progress. Attention now turns to the Autumn Budget, where plans to support economic growth and manage public finances could influence the Pound. Investors will closely assess the Chancellor’s announcements for signs of how the UK economy may perform in the coming months.
EUR
The Euro weakened last week amid growing concerns over France’s financial situation, rising government borrowing costs and ongoing civil unrest. Disappointing German economic data also added pressure. Looking ahead, attention turns to the European Central Bank’s latest decision and guidance, alongside new economic growth figures. Signs of a slowing economy or further concerns over France’s debt could weigh on confidence in the Euro in the coming days.
USD
The US Dollar faced pressure last week as improving market confidence reduced demand for safer investments. Political uncertainty also weighed on sentiment, although rising oil prices later helped the currency recover some ground. Looking ahead, investors will focus on the Federal Reserve’s latest guidance and US economic growth figures. Signals that interest rates may remain higher for longer, or stronger economic growth, could support the Dollar in the coming days.
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