The Weekly Market Update
News & Insights
w/c 15th September: Pivotal Data
GBP
The British Pound faces a pivotal week as key economic data and a central bank decision approach. In fact, wage growth, inflation, and labour market figures will influence market expectations around interest rates. While high interest rates continue to support the currency, slowing economic momentum and concerns over future fiscal policy may limit upside. Ultimately, investors await clarity, with increased volatility likely to follow any surprises in the data.
EUR
The Euro is finding support from reduced expectations of further interest rate cuts by the European Central Bank. Despite political uncertainty in France, the ECB’s steady policy stance and recent comments have reassured markets. The message that no immediate easing is needed has lowered the probability of additional cuts, helping stabilize the Euro. However, market confidence is fragile, and the Euro’s performance hinges on political developments, fiscal clarity, and broader economic resilience in the eurozone in the weeks ahead.
USD
The U.S. Dollar steadied ahead of a widely expected Federal Reserve rate cut, pressured by soft U.S. data and growing market conviction that easing will continue. In fact, weak labour market figures and subdued inflation support this view. However, uncertainty around the Fed’s long-term path limits downside momentum. Ultimately, despite minor gains, the greenback is seen weakening into year-end as investors position for sustained policy divergence with other major central banks.
Stay ahead with our weekly market updates, delivered straight to your inbox.